What is Human Capital Management (HCM) ?

What is Human Capital Management (HCM) ? 

The Human Capital Management consists of Core HR, Recruitment, Compensation Management, Performance Management, Time and Leave Management, Benefits and Payroll.

 

 Below are the modules of HCM:

 

Recruitment: recruitment is the process of finding and acquiring skilled human labor for organizational needs and to meet any labor requirement, also the recruitment module is used to administer the hiring process.

 

 

 

Core HR: This is the module where core organizational policies such as onboarding, transfer and promotions are managed. Core HR is the essential bulk of information and processes that pertain to the employees in any organization.

 

 

 

Performance Management: It's a systematic process of managing and monitoring the employees performance against their key performance parameters or goals and based on their performance the ratings are given at the end of the year.

 

 

 

Compensation Management: This is the module where organization's salary structure is administered. It is also involves setting up annual compensation budgets across departments, awarding employees the salary increment based on their appraisal ratings every year.

 

 

Time and Leave Management: this is the module where employees report their working hours through timesheets which is then used to calculate their wages, it also includes facilitating the employees to plan paid and unpaid vacations, sick time, FMLA etc.

 

 

  

Benefit: It is used to administer benefit plans that a company offer to its employees. This module manages the entire life cycle of benefit enrollment and the payroll deductions generated for them.

 

 

 

 

 

Payroll: this modules calculate the wages and salaries of organization's workforce and generates various documents for analysis and reporting purpose. This module takes input from various other modules like time and absence, benefit, and Core HR.