Today’s professional world is changing at breakneck speed, which means workers and employers are expected to monitor the continuous barrage of changes to technology, industry standards and office environments. Human resources professionals often face the brunt of this work. They must help bridge the gap between what businesses require from their human capital and what workers expect from their employers, all while following strict regulations. Effective human capital management is essential for companies today, and in this blog, we explore the basics, benefits and strategies involved in this field.
Defining Human Capital Management
While most industry decision-makers have likely heard of human capital, some still don’t grasp the basics of human capital management, or HCM. In contrast to traditional human resources strategies, HCM involves optimizing workplaces by doing things like implementing professional development programs, offering performance incentives, and streamlining traditional HR processes. These actions are designed to boost productivity, inclusivity, worker satisfaction and engagement, and other crucial features of a well-run business. Where HR aims to fulfill recruiting, training, compensation, and regulatory needs, HCM is designed to increase the value of a business by maximizing the potential of its human capital — its employees. HCM professionals often work hand-in-hand with a company’s HR department.
How HCM Relates to Daily Operations and Long-Term Success
HCM is a highly strategic field, and there are many ways for businesses to apply HCM strategy to meet specific goals. Professionals in HCM are often tasked with:
- Boosting efficiency in HR operations, often through automation and self-service options;
- Attracting qualified workers, retaining talent, and cultivating a valuable workforce through learning and development opportunities;
- Finding budget-conscious ways to manage human capital through effective scheduling, budgeting payroll expenses, and providing monetary and nonmonetary incentives for worker performance; and
- Adjusting the workforce and management practices to meet unexpected challenges, including changes in business strategy, unique HR needs, and changes to industry standards and regulations.
Professionals in HCM may use a variety of strategies and practices to maximize the potential of their company’s human capital, and the results of their efforts can be incredibly beneficial.
Benefits of Working with Qualified HCM Professionals
When HCM is executed well, the results can include an engaged and motivated workforce, efficient HR operations, and a pool of talented professionals who yearn to work at such a well-run company. Businesses with effective HCM departments can respond to sudden changes with ease. They can also provide significant learning and professional development opportunities to their employees, boosting the skill level and value of the company’s human capital.
About Lewis-Price & Associates Inc.
Lewis-Price & Associates, Inc., is a fast-growing mission solutions company supporting federal agencies through premiere training, program management and IT services. Serving federal agencies across the government spectrum, from defense to civilian, we ensure the success of ongoing federal agency operations through effective curriculum development, professional coaching, program management, and administrative and technical services. Lewis-Price is committed to providing high quality, effective and on-time solutions to partners and customers through a team that values integrity, intention and excellence in everything we do. Learn about how we can bring our unique approach to success to your organization today at lewisprice.com, and please follow us on LinkedIn, Facebook, and Twitter.