If your organization is losing valuable knowledge due to staff retirement, staff moving to other departments, or dismissed for a variety of reasons, then your organization needs to consider Human Capital Management (HCM) seriously. Managing your human capital when staff enters your organization through employee orientation, mapping their roles, responsibilities and their work are important aspects of Human Capital Management. Therefore, it is important to address leveraging knowledge management to manage your Human Capital.
What is Human Capital Management?
Human Capital Management is a systematized approach to employee staffing that perceives people as assets (human capital) whose current value can be measured and whose future value can be enhanced through investment. An organization that supports HCM, provides employees with clearly defined and consistently communicated performance expectations. In such a scenario, managers are responsible for rating, rewarding and holding employees accountable for achieving specific business goals, creating innovation and supporting continuous improvement.
Significance of Human Capital Management
Human Capital Management is essential for hiring, managing, training and retaining talented and high performing employees. It plays an important role in the recruitment process. It ensures that human resource professionals hire individuals who really deserve to be in the organization.
Realize that, recruiting the right talent is of utmost importance. An individual who is not fit for a particular role will not be able to contribute much in the long run.
Let’s discover some of the salient benefits of Human Capital Management:
Talent acquisition is one of the most crucial responsibilities of human resource professionals, often neglected in most small and medium-sized organizations. Do not hire someone just because you need to fill a vacant position or your superiors have asked you to do so. Analyze the background of an individual thoroughly. Try to find out why someone really wants to join your organization? Remember money should not be the only criterion why someone wants to change and join a new organization. An individual who has been assigned the role of acquiring new talents should not forget to check an applicant’s past experience, interests, professional qualification and reasons for changing previous job.
Human Capital management plays a vital role in orienting a new employee to the organization. Boring and meaningless induction programs lead to confusions and an employee eventually loses interest in the organization. Do not load someone with unnecessary information the very first day he steps into the organization. Make him or her feel comfortable. Ask the new joinee to enjoy lunch in office only on his first day. Order lunch from outside as a welcoming gesture and arrange all the team members to break the ice during the lunch session.
It is essential for employees to upgrade their knowledge with time to cope up with the changing situations. Human Capital Management helps in training the employees and making them indispensable resource for the organization. Motivate employees to take up special courses or online programs which would help them enhance their career profiles. Employees who do not brush up on their skills from time to time find it difficult to survive in the long run. Inculcate the habit of reading amongst them so that they are abreast with the latest knowledge in multiple domains. .
HCM as a Tool
In the back office, HCM is either a component of an enterprise resource planning (ERP) system or a separate suite that is typically integrated with the ERP. In recent years, the term HCM system has begun to displace human resource management system (HRMS) and HR system. The component provides managers with the information they need to make decisions that are based on data. Talent management can include dedicated modules for recruitment, performance management and learning. On the other hand, it comprises of compensation management, and other applications related to attracting, developing and retaining employees.
Like HRMS, HCM software automates many of the day-to-day record-keeping processes and provides a framework for HR staff to manage benefits administration and payroll, map out succession planning and document such things as personnel actions and compliance with industry and/or government regulations. HCM systems usually go beyond these basic HR functions by adding integrated talent-management features.
To conclude, human capital management is important for hiring the right talent, orienting him/her to the organization, making a new employee feel comfortable, training employees in order to constantly upgrade their skills, retaining employee and making employees self-sufficient and prepare them for adverse conditions.