When we decode the term Human Capital Management, there are three terminologies that you can access. Human, Capital, and Management – Human is a simple definition which everyone is aware of, it is capital which needs more elaboration. In the context of talent management, the workforce is considered as the capital in which the organization has invested. The workforce is the capital which will help the organization to yield better results and earn revenue. All the three words aligned together makes it an approach that a human resources exercise.
Professional human resources know how to handle the capital of the firm, and make them work to obtain optimum results. Human Capital Management is a practice of strategizing the approach with which an employee will be evaluated. From the very first step of hiring to retaining, a professional human resource works on all the trivial aspect so that an employee can significantly contribute to the organization. The major motive although is to reach the targets set by management, and in an attempt to do so the workforce is regularly trained, communicated, and rewarded to get motivated. To make an employee contribute significantly to the organization, HCM should be practiced religiously. A professional human resource treats their employee with utmost value and not like salaried slaves. Another very important point to be noted here is that HCM strategies are determined on the basis of the size and influence of a company.
Human Capital Management is more about ensuring development and growth of employee in the best possible manner. And in order to do so, evaluation of the performance is a major criterion and then training them in the area of development. Making an employee enriched with proper work experience and an indispensable part of the organization is a duty which professional human resource should duly adhere by. On a broader canopy, HCM includes all the practices and strategies that a talent manager undertakes to improve the workforce and realize the goals set by an organization.
Today (HCM) has evolved to some really great extent, and not only includes bringing resources on board but also making sure they are super beneficial to the firm. It now includes an operational, managerial, and financial aspect of an employee. And, to take care of all the aspect, automated evaluation process has been adopted by many establishments.
To conclude we can sum up by saying that HCM practices should definitely include – proper communication, imbibing leadership skills, access to information and performance evaluation. These are few basic requisites to a successful capital management process. And not only employee but talent manager should also include themselves when it comes to learning new things and keeping an eye on the latest development which can benefit them and the company at the same time. Lastly, a professional human resource is the one who can inspire innovations and value them, and also encourage the workforce to come up with new ideas which can be implemented to attain the position that an organization is aiming for.