Human Capital Management, or HCM, is more about a practice than a certain technology or defined system. Of all HR domain activities that have a place in organizational strategies, HCM tops the trending technology charts. The relevance of HCM is linked to the organization’s business development goals.

You may be already familiar with terms like Oracle HCM or some top popular platforms. HCM and its features are discussed in detail in this article, with a focus on how innovative HR systems can contribute to the core purpose of such solutions.

All About Human Capital Management

For some, HCM is an extended part of HR management. For others, it is the best portal in an operations domain. For some others, it can be interchanged with HRMS or HRIS functions based on their use cases. The ideal concept here is to seek an alignment between all the defined possibilities.

HCM is the implementation of an HR practice where workforce and talent management are added to the general HR activities. In this segment, the aim is to develop the human resources in an organization to become better at everything it represents within the business. All human resources are consistently considered in this scenario. They include resources under the external vendors, third parties, contract collaborators, etc.

When you check out the importance of human capital management, it is an exclusive domain that takes care of the progress and development aspects of human resources in a firm. It may help a specific resource in its journey from the initial recruitment phase to the different stages of growth in the organization. You can confidently say that every function in an HR system’s employee feature list comes under the concept of HCM.

Features of HCM in An Organization

To help understand HCM’s working in an organization better, you can learn more about its defined features.

  • Data coverage
    The number one feature that distinguishes HCM from other HR prospects is the wide, extensive coverage of data it holds within the ranks. Such stupendous databases are reference points for any HR activity in the system. You can segment those as per your specific requirements as well.
  • Integrations
    Data integrations are another core feature to identify an HCM system at work. It can sync well with any organizational segment like operations, finance, accounts, leadership, etc. You can connect the existing HCM to any future innovations or techniques by creating an essential workflow matching the same.
  • Employee engagement
    HCM is better utilized as the one-stop solution for all your employee engagement needs. You can connect an employee resource with the organization, starting with their intake to the firm until the provision of all company features is done. Upskilling and career progress are also covered in this feature.
  • Performance management
    An employee’s performance can be thoroughly recorded, analyzed, and managed with the assistance of HCM solutions. You may train them according to the reported performance metrics or decide on the factors of promotion/retention. HCM can assist in resource learning platforms using technologies like artificial intelligence.
  • Benefits administration
    The documentation and distribution of merits is a supreme attribute of a working HCM service. The top popular one in this section is the administration of numerous benefits to an employee based on his/her overall performance quotient.
  • Transparent reporting
    Transparency is key in all HR systems because the idea here is to opt for a reporting framework where each pointer and benchmark is noted down for the betterment of the organization. You can also deliver an independent module that strictly takes care of external resources.
  • End-to-end planning
    With a strategic HCM component at your disposal, it is feasible to plan an end-to-end solution for meeting all the HR demands of the firm. In a workflow like this, you won’t have to leave out any HR functions. There is also the absence of risk related to technicalities.
  • Compliance factor
    Safety regulations, standard policies, and compliance management are all part of the HR activity formalities. With a suitable HCM service, you can easily commit to such crucial options. There is no issue regarding the error-prone nature of manual operations either.
  • Strategic progress
    An organization’s HR solution should follow a strategic workflow. The importance of this can be highlighted with the help of influential HR operations in achieving the target objectives in your business model. An effortless method to arrive at this optimal route is an HCM model.
  • Custom features
    The above features help define human capital management. Apart from the common features, you can always go for personalized options to add to the HR system. What entertains this idea at its best is the core integration factor that acts as a boon for all digitized HR processes. You can get as creative as you want with this scenario.

Merits of Selecting HCM as The Core System

As for the application of the HCM system for the HR processes, some advantages are guaranteed to happen. A few that may work positively for your organization are listed below.

  • Adapting to work conditions
    When a defined HCM is in place, your HR model can adapt to any work conditions or requirements.
  • Changing workforce requirements
    Workforce management becomes easy with HCM solutions. You can manage the system, add or create value, and generate rewards for the workforce.
  • HR efficiency
    HCM services are guaranteed to improve the efficiency of HR personnel and tasks in an organization.
  • Resource productivity
    The productivity of each resource can be calculated and improved by boosting the implementation of HCM techniques.
  • Documented analytics
    All analytics and database metrics related to HR operations are available in an HCM unit. You may document those as per the firm’s needs.
  • Competitive and equitable environment
    When you make use of HCM for managing HR tactics, resources are guaranteed the presence of an equitable and competitive workspace.
  • Effective talent management
    The monitoring and supervision of talent right from its initial inflow stage through all parts of the acquisition journey can be managed well with HCM.
  • Predictive structure
    An advanced system like the HCM solution is effective in creating a predictive analytics model to calibrate and raise your HR game.
  • Business growth and support
    It is not an overstatement to learn that HCM systems produce business support techniques with a progressive mix of HR solutions. An example is the use of the Workday HCM tool.
  • Organizational checklist
    The presence of HCM can easily help you gain momentum in developing a checklist to match all organizational success activities.

Can Artify 360 Add to Your HCM Objectives? Find out Here

Artify 360 HR software system is an out-and-out solution that clears all your HR goals under one roof. In this solution, you may opt for customized features that can help you achieve your resource management objectives. Remember that an innovative strategy-based HR system is also relevant to your company’s branding purpose. Artify 360 cloud HR software can help with such market positioning as well.

The summarized advantage of a digital solution like Artify 360 HR payroll software is the core interaction feature it provides for all branches of the organization. If you feel like it is hard to grasp the knowledge of HCM’s working in a professional context, you can reach out to the dedicated team handling the same. You can connect with your specialized human capital management analyst or a general resource. Go for a trial run and see how you can leverage the SaaS suite to meet your HCM needs.