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HR Glossary

HR terms frequently used by HR professionals.

HCM (Human Capital Management)

What is HCM (Human Capital Management)?

Human capital management (HCM) is the process of managing a workforce efficiently through right from the recruitment stage all the way till developing employees t achieve organizational goals.

What are the benefits of HCM (Human Capital Management)?

The benefits of HCM (Human Capital Management) are:

  • Enables the HR leaders to hire the right candidate for the right role.
  • Enables free flow of information between managers and their teams.
  • Provides a structure for training and development activities essential for upgrading employees’ existing knowledge.

What are the core aspects of HCM (Human Capital Management)? 

HCM (Human Capital Management) has three broad aspects –

1)Talent acquisition – Using talent gap analysis, HR leaders determine the immediate talent requirements and map out business strategies for future requirements.

2) Talent management – HR leaders match the current world of work environment, for example, managing remote workers, communication systems, hiring gig economy workers, etc., with suitable systems in place.

3) Talent optimization – To prepare employees for future requirements, HCM incorporates growth strategies through career-pathing, mapping competencies, succession planning, and providing learning and development opportunities.

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