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Back to Human Resources Definitions

What is Human Capital Management

Human capital management involves practices related to managing an organization’s employees. Human capital management practices come in three main categories; workforce management, workforce optimization, and workforce acquisition. In other words, managing staff, optimizing performance, and recruitment.
Human capital processes include payroll, workforce planning, workflow management, compliance, onboarding, training, performance management, and more. Human capital management allows companies to successfully manage their staff, resulting in better organizational outcomes, higher productivity, and smooth processes. Companies need specific skills and abilities from their team to ensure the company’s success. Human capital management enables businesses to hire the right people with the skills the company requires.

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