HCM or Human Capital Management is a term that is certainly familiar to the ears of HR professionals. However, for lay people, there may still be those who think that the two have different things in a company.
For some others, they may be considering the concept and want to make a development. Well, on this occasion, let’s discuss Human Capital Management, complete with its responsibilities and benefits.
What is Human Capital Management?
Human Capital Management is a form of resource management that has a scope, such as in terms of employment, acquisition, and also more effective and tactical employee development in order to optimize the company’s economic value.
Furthermore, Human Capital Management is a series of activities related to obtaining, analyzing, and reporting data that can inform the direction of a strategy for increasing investment, value and operational decisions of HR, both at the front line level and at the corporate level.
So, we can see that Human Capital Management is basically very related to value. Well, because it has a close relationship with value, then Human Capital Management certainly uses certain measurement methods in order to achieve various goals of Human Capital Management.
Human Capital Management Tasks
1. Recruitment
Human Capital Management has full responsibility for recruiting the right talent and according to the criteria to help the company achieve its business goals. Generally, the company will provide a set of tools for the recruitment process so that it can run smoothly and obtain ideal candidates.
2. Onboarding
After successfully recruiting, Human Capital Management will prepare new employees with onboarding in accordance with the company culture.
Some of the preparations that Human Capital Management will provide to employees are introducing the company’s business, informing them of company regulations, and providing the necessary work equipment.
With onboarding, companies will be able to create a conducive work environment and help employees adapt according to their functions.
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3. Training and Development
Human Capital Management is tasked with providing adequate training to help each employee perform better for the company. This will allow employees to hone their skills and gain new skills so they can develop in their careers.
4. Retaining Employees
No company wants to lose its best employees. Therefore, Human Capital Management will support employees to use all their knowledge and skills for the company.
Human Capital Management will also provide awards in the form of praise or incentives for employee performance. So, employees will be more satisfied and feel more appreciated by the company.
5. Assess Employee Performance
Furthermore, Human Capital Management is also tasked with providing employee assessments so that their work productivity continues to increase. This assessment is useful in order to provide feedback to them. This assessment is also carried out with various reviews and surveys.
In this way, management can identify gaps in skills, training, job satisfaction, and various other things that impact employee effectiveness.
Benefits of Human Capital Management
1. Increase Employee Satisfaction
Investing in HR development can increase a greater sense of job satisfaction for employees. Reported from the Society for Human Resource Management (SHRM) page, as many as 42% of the 600 employees they surveyed admitted that the company’s commitment to professional development was very important for their job satisfaction.
Therefore, it is necessary to have training programs and also important career development with employee compensation. When employees feel that their workplace or office cares about career development, they will also feel more satisfied with their work.
2. Increase Engagement
Lack of opportunities to develop and grow towards a better direction can not only cause a feeling of being underappreciated, but can also be a source of employee stress. Especially for millennials, their opportunities to develop and grow are very important.
A survey conducted by Deloitte in 2016 reported that as many as 70% of millennials admitted that a lack of leadership development was the reason for being asked to leave their current job position.
3. Increase ROI
Whether we realize it or not, every company will definitely invest in human resources. One of the real forms is employee salaries and benefits, as well as career development programs.
Human Capital Management understands that investment strategies in humans can have a positive impact on the development of a company’s business, both in the long and short term.
The investment will provide benefits in telegram database users library the form of return on investment or ROI. The investment issued is able to provide new skills and expertise for employees who want to increase innovation, productivity, competitiveness and profit.
For this reason, various global companies that make large investments in employees tend to have high profits.
4. Better Recruitment
Companies that invest in HR development will find it easier to attract better candidates outside. Great candidates not only need compensation phone number list in work rewards, but also need opportunities to grow further.
If this is not part of the job offer, it will be more difficult for companies to acquire their skills.
Moreover, the main consideration for millennials today in applying for jobs is having the opportunity to continue learning and also developing. Those who will currently dominate the workforce want to work for companies that are willing to invest in human resources.
Conclusion
HRM is seeing humans as a resource that will eventually run out if used continuously. While HCM or Human Capital Management is seeing humans as capital that has value where if invested properly will be able to provide great benefits.
In improving the quality of existing human resources, Human Capital Management is claimed to be more effective and also able to provide broader benefits, which benefits can be felt by the company and the country’s economy.
