Human Capital Management (HCM)

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Human capital management (HCM) is a set of practices related to people resource management. These practices are focused on the organizational need to provide specific competencies and are implemented in three categories: workforce acquisition, workforce management and workforce optimization. The applications that help to enable human capital management include:

What Is HCM Software?
Human capital management software (HCM software) handles many functions and processes needed for effective workforce management, saving time and money. HCM software is sometimes called a human resource information system (HRIS) or human resource management system (HMRS).

Full-featured software streamlines and simplifies such things as:

Recruiting
Applicant tracking
Onboarding
Employee recordkeeping
Workflows and approvals management
Time tracking and attendance
Payroll
Performance management
Employee self-service
Reporting and analytics
How to Choose the Right HCM Software
There are many HCM software systems on the market. Their capabilities and advanced functions vary, so it’s important to carefully assess your organization’s current and future needs before selecting one.

Some organizations buy HCM software that’s installed on their hard drive or server, but most choose cloud-based HCM software. The benefits of the cloud include convenient access from anywhere, flexible expansion capability, and automatic software updates.

To protect your organization, choose software that can keep pace with the ever-changing regulatory and statutory requirements at all jurisdictional levels. This is especially critical for multinational corporations. Also, ensure the system provides real-time and predictive analytics for benchmarking, modeling, and forecasting and that the vendor’s service model meets your long-term requirements.what is HCM