You’ve probably heard time and time again that your human teams are the greatest asset a business could ever have.
It’s not those impressive bots on your website or the expensive real-estate that host your business; neither is it the top-of-the-line machinery that makes day-to-day operations possible.
It’s your people.
What is Human Capital Management?
Human Capital Management refers to the process of optimization and development of the processes revolving around the acquisition management and development of your human resources.
HCM refers to a change in perspective. With HCM, you no longer look at HR management practices as a chore or expense, but as an avenue you can leverage for business growth and competitive advantage.
Drawing Parallels between Your Employees and Capital
Understanding returns as a characteristic of capital is the first step in grasping the concept of human capital management.
It’s quite simple. Capital has returns depending on its utilization. The returns on capital can grow, diminish or even remain stagnant.
Looking at your human resource as capital means appreciating that:
- Your human resource teams are an investment
- The returns from your teams can be increased
- The returns from your teams can diminish
- It’s possible to make your teams more efficient through investment
The Risk of Siloed Human Capital management systems
If you’re lucky enough to have been at your company when it started, you probably remember having a small HR team that could fit into one room.
However, growth is necessary and welcome. Your present-day HR team probably runs on several departments, there’s one for training, and others for recruitment, performance tracking, and remuneration.
This leads to one question: Is HR teams’ growth and specialization a step forward or backward?
It turns out all these HR departments being siloed and running parallel to each other comes with its fair share of challenges.
High on the list is:
- A lack of communication between different human resource teams
- Duplication of roles and redundant, wasteful processes
- A less-streamlined workflow
- Low productivity
- Challenges in keeping employee data secure
Bringing All Your Human Capital Needs under a Single Platform
HCM means going back to your roots and bringing back all your HR teams to that single room your company may have started with.
Fortunately, thanks to advancements in technology, you no longer need a physical room for your HR management teams to come together. Hell, they don’t even have to be in the same state.
HRM will work with your organization’s:
1. Talent Acquisition
You can’t manage human resources without talent in the first place. This is where talent acquisition comes in HCM.
The role of HCM here is to move you from hiring to recruitment. This way, your onboarding process is less reactive and more proactive.
Here, your HCM system will manage the length of the entire process, exposing you to the benefits of using software to track job applications.
Talent acquisition will deal with:
- Tracking the application process
- Recruitment Chatbots to automate communication
- Automating skill matching
2. Talent Management
The work doesn’t end once you have acquired the best talent. That’s actually when the work begins. HCM uses artificial intelligence and AI to help streamline talent management across different departments.
The goal of HCM here is to cut on inefficiency by reducing redundant processes and automating mundane tasks that machines and software could handle better.
HCM handles your talent management needs, including:
- Time and attendance tracking
- Payroll management
- Performance tracking and management
3. Talent Optimization
The human resource in a successful organization is meant to age like fine wine. An employee should experience visible growth from the moment they join up with your organization to the day they leave. This is where talent optimization comes in.
Talent optimization includes the post onboarding processes that revolve around:
- Skill honing and training
- The mapping of strengths and competencies
- Career mapping and creating a path for each individual
But that’s A Lot of Work, Enter HCM Management System
HCM may look overwhelming, that’s because it is, especially for a company that doesn’t specialize in it in the first place.
That’s why the best step to take is to outsource HCM to a Payroll company and let someone else do the heavy lifting on your behalf.
ASAP Payroll is your one-stop shop for all things payroll management. We specialize in reducing inefficiencies and making your payroll process less of a hassle.
For more information, contact us today, and we will be more than willing to help.
