Human capital management, which translated literally means management of human capital, is often referred to with the acronym HCM.
Human capital management transforms the traditional administrative functions of human resources (HR, literally human resources) into opportunities to drive engagement, productivity and business value. We speak of human capital above all in the moments in which new technologies seem capable of replacing employees and automating all production processes:
It happened at the beginning of the industrial era of the 1950s, when businessmen realized the strategic importance of workers’ skills and knowledge for business growth.
The advent of the internet in the late 1990s is another time when the term human capital has made a comeback, with technological innovations and the rapidly developing digital world radically transforming the way people work.
We are talking about it now, as the golden age of HCM because new technologies (artificial intelligence above all), have provided human resources managers with tools to enhance human capital, link the results obtained to MBOs and KPIs with innovative tools and create a more personalized employee experience.
The 4 great advantages of human capital management
Why invest and focus on human capital management? What benefits can it bring to your business?
These are probably the two most popular questions. We can identify 4 major advantages:
- Attracting and retaining the best talents on the market , optimizing the recruiting phase and offering opportunities for learning and professional growth.
- Optimally manage resources and investments , exploiting meritocracy and smart working to organize time and resources for the various projects and establishing criteria for any rewards.
- Prepare for the constant changes that the market imposes, anticipating any problems and aligning employees with the culture, vision and corporate mission.
- Simplify and streamline the operations of human resources , thanks to the automation of previously manual processes and the new potential of people analytics.
All you need to know in the human capital management field
We strongly believe in people and in the value of human capital. We consider human capital management the fundamental resource for making every organization grow and guaranteeing the necessary flexibility to face the present and, above all, future market.
For these reasons, below you can find a collection of articles dealing with this topic: we have chosen to pay close attention to smart working and the choice of employees , without neglecting important aspects such as team building and the motivation of our employees.