Organizations today are quickly recognizing that their workforce is by far their greatest asset. After all, it is a company’s employees that possess the skills and knowledge needed to most efficiently execute day-to-day activities. And it is the front-line staff members who truly understand what’s required to keep operations running smoothly. Additionally, studies show that it costs far less to retain a valuable employee than it does to find, hire, and train a new one. That’s why many companies are turning to human capital management solutions. So what is human capital management, and why do you need it?
Human capital management systems automate and enhance all facets of human resources operations. From recruitment, hiring, and training through performance evaluation, promotion, and separation, human capital management empowers companies to achieve true performance excellence by dramatically improving the ways in which they acquire, manage, compensate, and retain their employees.
Many companies already have simple human resource automation systems in place. Yet, these applications do little more than automate traditional HR functions such as time and attendance, payroll processing, and benefits administration. Human capital management solutions take it one step further, providing the tools and technologies needed to enhance the entire employee lifecycle from start to finish. As a result, they significantly increase the value of the relationship between company and each of its staff members.
Human capital management also bridges the gap between corporate goals and strategies and the needs and ambitions of individual workers. These solutions enable career growth or work/life balance by directly linking skill enhancement, advancement paths, and roles and responsibilities to company objectives. As a result, human capital management applications ensure that everyone gets what they want. Long-term profitability is reached, and employees gain the kind of career growth they desire. This, in turn, significantly minimizes attrition (both voluntary and involuntary), as well as, all associated costs.
Other benefits of human capital management include: