As an employer, you have probably heard or have seen the term “Human Capital Management” or “HCM,” but what exactly does this term mean?
What is HCM?
Human Capital Management (HCM) is the set of practices which companies use to recruit, manage, develop, and optimize employees.
When done efficiently, HCM can significantly improve traditional administrative HR functions, such as recruiting, training, payroll, and performance management.
What does Human Capital Management include?
HCM covers a wide variety of administrative practices and processes including:
- Onboarding
- Time and attendance tracking
- Payroll
- Compliance
- Employee self-service portal – where employees have access to benefits and pay information.
- Benefits
- Retirement services
- And more!
If you would like to learn more about the HCM services we offer, click on the hyperlinks above to learn more.
What Is the difference between Human Capital Management and Human Resource Management?
Although these terms are sometimes used interchangeably, there are key differences between the two. Human Resource Management (HRM) mostly focuses on the core administrative Human Resource functions such as maintaining employee records and managing employee benefits. Whereas, Human Capital Management is a broader term which includes HRM functions as well as other strategic functions.
What are the benefits of Human Capital Management?
In short, HCM can help improve workforce productivity and help companies engage and retain valuable employees. In an integrated HCM solution where HR services are unified, such as our Come Aboard Service paired with our Human Resource Support service, you may be able to save time and money while improving your existing systems and practices.
Contact us today to learn more about how Corporate Payroll Services can help unify your systems and save you time and money while retaining employees.
