Human capital management (HCM) is an approach to employee staffing that perceives people as assets (human capital) whose current value can be measured and whose future value can be enhanced through investment.
When to consider Human Capital Management?
Always! With the bulk of most organizations’ operating expenses going towards labor costs, ignoring how this money is invested or can be better leveraged is not efficient or effective for the business or employees. Business leaders recognize that having the right talent, at the right time, and doing the right thing(s) is what drives their business forward.
Why use the HCM approach?
Increase your HR department’s cost-effectiveness, efficiency, preparedness, and overall success by developing an HR strategic plan. An organization that supports HCM provides employees with clearly defined and consistently communicated performance expectations. This keeps business moving forward!
- Workforce planning
- Employee Development
- Training : new and ongoing
In summary, employees are your biggest asset; without them, one or 500, no business can succeed. By investing in Human Capital, whether it is training a new employee or planning for the year to come, understanding the value of human development and how to manage it within your organization is essential.