Strategic Human Capital Management Defined
Strategic human capital management (sometimes referred to as strategic HCM) is the essential backbone of all human resource-related initiatives. A strategic human capital management plan, usually executed with the aid of integrated, full-suite HR technology, is most successful when it encompasses all parts of the employee lifecycle, beginning with recruitment and moving all the way through retirement.
A principal goal of strategic human capital management technology is providing a consistent, easy-to-use experience for all employees that enhances work life. Because, after all, happy employees lead to happy customers, which leads to positive business results.
Why Use Strategic Human Capital Management?
When companies are looking to optimize their human resources practices, they evaluate solutions that provide strategic human capital management. This well-developed, people-centered approach to business involves a variety of HR-related processes—such as recruiting, onboarding, payroll, talent management, and others—working together as one, unified “team” to improve the overall health of the organization, by building upon the individual strengths of its people.