HCM may appear to be a novel notion, but it dates back to 1696 when Sir William Petty recommended that the cost of human life be factored into everything from work to war. Similar concepts of investing in people may be found in the writings of Adam Smith, John Stuart Mill, Jean Baptiste Say, and other capital and labor economists throughout history. Schultz coined the term “human capital” in 1961, saying, “Consider all human qualities to be either natural or acquired.” Human capital will be one of the valuable attributes that can be improved by suitable investment.”

Today’s HCM is based on the principle of prioritizing people and talent management over administrative tasks performed by a traditional HR job.

What are the practices covered in HCM?

  • Competency management – Identifying the skills and abilities required for a person to fulfill their objectives and deliver exceptional results, as well as using training and development to best utilize those skills while aligning with corporate strategies
  • Workflow management- The process of aligning tasks and business processes to produce a series of tasks that leads to a broader purpose.
  • Performance management entails strategically matching business and individual employee goals.
  • Reporting and analytics: Collecting data on performance, payroll, workflows, and anything else relevant to HCM solutions, running automated analyses within the software and then generating various sorts of reports
  • Workflows and approvals management entails keeping track of workplace workflows and obtaining approvals for new or modified workflows.

HCM in the cloud

Cloud computing and software-as-a-service (SaaS) concepts are fast gaining traction in HCM software. Cloud-based models can reduce IT overhead expenses, speed deployment and updates, produce more fixed operational costs, and improve agility with easy upgrade options

We’re living in the Golden Age of HCM, and the future looks bright. Every day, new technologies change and develop strategies, opening up new growth chances. Across the globe, teams are becoming more agile, streamlined, and linked. The use of SaaS and cloud computing in HCM is growing, and the future may see more artificial intelligence (AI) implemented, such as chatbots, mobile-friendly adaptations, peer collaboration, and infinitely faster data mining.