HR Glossary / Human Capital Management

Human capital management (HCM) refers to many processes that relate to recruiting, managing, developing and optimizing the skills, knowledge, and experience of employees to increase their value to the organization.


What Tasks Feature Human Capital Management?

Human capital management regroups tasks related to talent acquisition, talent management, and talent optimization. Common tasks related to human capital management include:

  • Recruiting and e-recruitment;
  • Improving performance culture;
  • Creating better employee onboarding;
  • Establishing regular communications with employees;
  • Managing leaves and absence;
  • Tracking remuneration and roll-out;
  • Managing payroll;
  • Monitoring goal alignment and task completion;
  • Recognizing the work of employees;
  • Ensuring compliance;
  • Planning employee learning and development strategies.

What Do Human Capital Management Software Do?

Human capital management software streamline and simplify several time-consuming tasks to help managers look after their employees. Such software also record and store data to help managers gain insights about the best way to recruit and retain employees.

Human capital management software allow employees to access their own data and tools to, for example, request day offs or update their availability.

What Is Human Capital?

Human capital refers to the skills, knowledge, and experience of an employee.

The human capital of an individual can change depending on the resources invested in training, education, health, and well-being. Human capital is an intangible asset that can grow or depreciate over time.

Why Is Human Capital Management Important?

Human capital management is essential for organizations that aim to have effective hiring, management, and training processes. Human capital management also plays an important role in improving the work experience of candidates and employees.


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