HRM and HCM, short for human resource management and human capital management, means everything related to employees within an organization. HCM is a crucial aspect for every organization since employees keep the company running. The importance of HRM and HCM rose throughout the last centuries when developed countries grew from product-based organizations to service-based organizations. Organizations realized that a great HRM strategy correlates to organizational success, which resulted in increased popularity in HRM and HCM.
What is HCM?
Let’s start off with describing HCM and the difference between HCM and HRM. Human resource management (HRM) is a term used to describe the process of setting up employee management according to company policy. Examples are employment contracts, employee reports, payroll administration, social provisions and laws, and regulations. Human capital management (HCM) sees employees as a capital, meaning that by investing in employees, organizations can grow their capital in the future. HCM helps your organization hire the right people. This will prevent you from hiring employees who don’t really fit at your organization. Human capital management plays a huge roll in:
- Attracting employees
- Onboarding employees
- Upgrading employees’ skill
- Retaining employees
Attracting employees for your organization is harder than you might think. In times of low unemployment rates, the right person for the job can be hard to find. Make sure you stand out as an employer. Use different channels to promote your job offers (own website, LinkedIn, Facebook, job database, referral by employees, online ads) to maximize your reach to attract more (and better) candidates. Click here to learn more about recruiting employees by using LinkedIn.
Onboarding is all about making new employees feel welcome at your organization. Maximize employment involvement to make employees more motivated with a good onboarding process. Make sure you have got a checklist with things that need to be done before a new employee joins. Who gives the new employee an office tour and how does your new employee submit expenses? Read all about it in our blog about making a new employee feel welcome.
Upgrade employees’ skills
There are different ways to upgrade your employees’ skills. One of them is by growing within an organization. Our Succession Planning Web App tells your HCM Manager which employees are ready for the next step by looking at their potential and performance.
Retaining employees for better HCM
Retaining talent is very important to ensure your organization of future growth. Keeping your employees motivated and happy are two ways to retain them. Click here to read more about the best ways to reward employees in order to increase motivation.