Tuesday, 21 June 2016

Why is Human Capital Management (HCM) Important in Organizations?

Let’s start this blog by asking a very simple question. What do you think is the most important thing to a company?

Employee. Correct, these are the people who work day in and day out to bring the maximum output one individual can. An employee can either make or break the company foundation. And thus it’s very evident that the importance of the employee to a company is of high priority. 

Human Capital Management (HCM) is essential for managing, hiring, training and retaining high performing and talented employees.

Human Capital management plays a crucial role in the recruitment procedure. It ensures that human resource professionals hire people who really deserve to be in the company. Recruiting the right talent is most importance. A person who is not fit for a certain role will not be able to work much in the long run.

Human Capital management also plays a major role in orienting a new employee to the system. Meaningless and Boring induction programs often leads to confusions and an employee gradually loses interest in the organization. It is important for all the employees to upgrade their knowledge with time to come up with the ever changing situations. Human Capital Management (HCM) basically helps in training the employees and making them the best resource for the organization. They always motivate employees to take up new and special courses or online training programs which would help them in their job. This is generally because employees who do not brush up on their skills on a regular basis find it difficult to survive in the long run.

Human Capital management always plays an important role in increasing the prominence of employees. Individuals are always in a position to contribute more towards the system, eventually increasing the overall production of the organization.

To put it in a nutshell, human capital management is important for:
  • Hiring the right talent
  • Orienting him/her to the organization
  • Making a new employee feel comfortable
  • Training employees in order to constantly upgrade their skills
  • Retaining employees
  • Making employees self sufficient and prepare them for adverse conditions
  • Human Capital management generally helps in developing skills of every employee which in turn help them stand apart from the rest.