Human capital management software is a unique approach to HR that sees the employees of a company as assets, or human capital, with a current and future value. It recognizes that an organization’s staff help it generate revenue through their efforts.
By using a human capital management approach, a company can also seek to increase the value of their workforce by investing the right amounts in the right places.
How Organizations Using Human Capital Management Operate
Any workplace that uses human capital management systems will need to adapt its overall workforce management style to use this approach to its fullest potential. This involves providing employees with performance expectations that are realistic, as well as clearly and regularly communicated to them.
The company’s management team has the responsibility of seeing how well the workers are doing with regards to these expectations. They will also need to develop and deploy measures that hold employees accountable for achieving their goals, as well as providing the right incentives and rewards for doing so.
If this is done right, the entire workforce will be motivated to strive for continuous improvement and innovation.
Deploying a Human Capital Management Strategy
Depending on the size of the organization and their current approach to human resource management, deploying a comprehensive human capital management strategy across the board may be quite a challenge.
This is why any such initiative must involve input from staff at various levels of the organization to ensure that everything goes smoothly.
Some businesses have implemented the approach by first deploying it to specific departments or corporate divisions, then taking a look at the results that it gave, including any obstacles to overcome or areas for improvement. The approach was then deployed across the remainder of the company.
Implementing the new management approach can be made easier in some cases by hiring experts that specialize in it as consultants to help during the process. However, this isn’t an absolute requirement.
Many other businesses, especially smaller ones, have succeeded in doing it on their own through the efforts of their in-house HR and management teams.
Can Technology Help?
When dealing with human resources, there isn’t any kind of software that can automate everything, especially when making important changes to the overall management approach used in the company.
There is simply no replacement for human ingenuity and involvement if one wants a company to succeed and become more profitable. But there are some software solutions to make things easier.
HR management software packages that are built around human capital management are available for small, medium and large organizations. There are some specialized tools that help define goals, measure performance in real-time and spot trends for some corporate departments, most often sales and marketing.
Other solutions are all-in-one packages that also have time and attendance, payroll, benefits administration and talent management functionalities.
There are solutions available for businesses of all sizes, regardless of their industry sector. Some are free and completely open source, while others are commercial products that can be purchased or paid for on a monthly basis.
Choosing the right one is important, so decision makers should take the time necessary to compare the various options that can work for their company.