october2021 - 7

FEATURE
What is Human Capital Management?
by Mary Girsch-Bock
HUMAN CAPITAL MANAGEMENT or HCM looks at your
workforce differently. Instead of classifying employees as
an expense, HCM views workers as an asset.
While HCM technology helps businesses
hire the right people for the job,
it doesn't stop there. HCM also helps
to optimize the workforce you already
have in place.
Human capital management
includes the following:
* Recruitment: HCM starts at the
beginning, by ensuring that the right
people are recruited for the right jobs.
* Employee onboarding: Much of the
ultimate success of an employee can
be traced back to the onboarding
process. Was the employee given
the right tools from the start to be
successful? That's one of the things
that human capital management helps
to ensure.
* Time and attendance: To pay employees
properly, you'll need a system that
employees will quickly adapt to that
will track time worked properly.
* Payroll: Of course payroll plays
an important role in HCM. Paying
employees correctly and on time is
part of a good management strategy.
* Talent management: If you have
hundreds or thousands of employees
to manage, it's easy to overlook some
of them. Using talent management
resources can help to retain your good
employees while also pinpointing
those that may need some additional
assistance.
* Training: Training and talent management
go together. To be successful,
employees need to be properly trained.
Human capital management makes it
easy to manage all levels of employee
training from initial orientation to
management training.
* Benefits: If you offer benefits to your
employees, you need a way to manage
them properly. HCM makes it simple to
offer the benefits that your employees
desire, and once offered, makes it
simple to manage them properly.
* Reporting: Is your business doing a
good job managing its employees? The
best way to find out is to have access
to various reports and analytics that
can point out successes as well as
areas that may need more attention.
* Compliance: Much of HR and payroll
requires some level of compliance.
Using an automated system where all
employee-related tasks are centralized
can help keep your firm or business
compliant.
How can human capital mantechnology
help your
don't also commit to investing in
those employees by offering growth
and training opportunities? In turn,
your employees will feel valued and
appreciated, which increases employee
retention rates and promotes both
loyalty and productivity.
* Encourage growth: By combining
human capital management tasks
into a single technology, you can
streamline recruiting, hiring, onboarding,
payroll, and HR into one single
platform, making it easier to manage
your employees properly.
* Improve compliance: Employee
management involves a lot of compliance,
including compliance with labor
laws on a local and federal level, to
complying with tax withholding and
remittance. In today's often contentious
climate, business owners must
also ensure compliance with sexual
harassment rules, unfair termination
rules, and other instances where
non-compliance can prove to be costly.
Human capital management isn't
just a buzzword anymore. It's a highly
resourceful technology available to all
businesses who want to invest in their
employees. ■
agement
organization?
The basis of human
capital management
is your employees.
By using HCM
technology to properly
manage your
employees
from
the start, you can
reap multiple benefits
including the following:
* Make better hiring decisions: The
right employees can mean
the difference between
a successful or a
mediocre business.
Predictive analytics
can help your business
find and retain
the best employees
by offering competitive
salaries and benefits, along
with other perks that can help
you not only recruit but retain the
best talent.
* Optimize employee talent: Why
commit to hiring the best if you
OCTOBER 2021 ■ www.CPAPracticeAdvisor.com
7
http://www.CPAPracticeAdvisor.com
october2021

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