HR departments perform a complicated and dynamic role in companies, but their primary responsibility is what’s known as “human capital management” (HCM).
What is Human Capital Management (HCM)?
According to Gartner, HCM is a “set of practices related to people resource management,” particularly in the categories of workforce acquisition, management, and optimization. Human Capital Management applies to any company, but it’s exceptionally important for companies with “knowledge workers,” where the business’s most risky asset is its people.
“People-related costs, including salary and benefits … are now the single biggest budget items for most businesses, which means human resources has moved to a more strategic, integrated role in performing the overall organization’s strategy and goals.
But how can you accomplish successful Human Capital Management in the present-day world?
Look Beyond Recruiting and Onboarding
When it comes to talent management, some organizations are so focused on hiring new employees that they end up neglecting the people they now have. But smart human resources experts know that employee commitment must reach beyond the recruiting and onboarding processes.
“Keeping staff happy and interested in your organization now depends very massively on how you propose the entire employee life cycle,”
Deb Cupp, senior vice president and general manager for HR line of business at SAP, said that “you should focus on each individual’s ability to progress, considering their long-term options.”
Instead of just focusing on the top employees, think of everyone as an expert.
Learn How to Handle Each Employee
It’s essential to take a personalized strategy to the day-to-day supervision of employees. The importance of knowing your staff’s characters and choices into account when managing and interacting with them.
Learn how everyone is wired to cater to their requirements as an employee. For example, an emotion-based person needs more regular check-ins and a more personal relationship than a thought-based employee.
Things like skill development and worker engagement are “ongoing processes planned to be strategic, sustainable and assessable,” and there is no one-size-fits-all solution for managers. Actions and programs should be assessed to provide personalized and efficient results for employees.
Invest in the Right Technology for Human Capital Management
If you want to make your Human Capital Management methods as effective and convenient as possible, it’s crucial to execute the right tech tools for your organization.
“Human Resources professionals should start investing their time to build automated processes, utilizing technology, so that they can start to get out from behind the table stacked with paper and get out to get to know the people,”
When HR experts get to know the company’s employees, they can then try to understand the insights they’ve obtained to enhance the organization.
Providing Smart HRMS for your human capital management (HCM) needs.
Take a Positive and Transparent Approach to Communication
All organizations must deal with differences and transformations that influence their workers. HR specialists should keep open conversations with the whole organization at the forefront – not only as transitional times but all the time.
“Change is scary for everyone, and the unknown causes fear,”. Communicate not only what is happening [in this situation], but also the day-to-day. Have open communication as much as possible so people know what’s going on, whether it’s relevant or not.
Adding that conditions like layoffs or funds cuts, which are viewed as negative and alarming, should be re-framed positively and effectively when they’re communicated to workers.
For example, offering outplacement assistance to your workers can provide substantial support to workers whose roles have been changed. This not only helps those workers quickly move into new roles but also reminds the other employees that your company has their best interests in mind.
During times of change, it’s our responsibility to provide … hope for the future, instead of creating circumstances that allow workers, both impacted and continuing, to dwell on the past.