Human capital management (HCM) is a business philosophy that emphasizes the enhancement of employees while viewing them as a quantifiable asset whose future value can be increased through investment.
Employees are perceived as assets that can be provided with clear performance expectations, against which they can be rated and rewarded based on their progress over time.
Human Capital Management Metrics and Solutions
Human capital management involves providing employees with the tools and training needed to accomplish stated performance goals, as well as metrics for monitoring and assessing the progress made toward these goals. HCM is also typically a key component of a company’s comprehensive enterprise resource planning (ERP) system.
Solutions and services vendors like Workday, Salesforce, Ceridian and Oracle currently offer a variety of Human Capital Management options, both in the form of on-premises software as well as cloud versions of HCM.
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