Why is Human Capital Management important?
Like I said before, Human Capital Management is the process in which an organization sees its employees as its capital on which if they invest correctly it will enable the company to achieve its goals and grow in its sector. So, the major importance of Human Capital Management comes in the different ways it can improve the capital, aka the employees of an organization which improves and grows the organization.
Some key areas where a proper HCM process plays an important role are:
In Hiring the Right Talent
HCM helps an organization clearly understand the type of employees it needs, the employees who will be a true asset to the organization, and also makes it easy to bring this into consideration while hiring. It helps to avoid hiring the wrong people.
Onboarding the Employees
HCM helps to onboard and orient the employees efficiently. The Onboarding process becomes a way through which the employees know what their organization expects from them and also understand how their performance is important to the organization. There are no ambiguities from Day 1.
Career Development for Employees
If your employees feel empowered from their everyday work, and see that their career path is in the right direction, they will perform well and bring more value to the organization. HCM helps organizations to give that win-win situation where employees grow as individuals and benefit the organization.
Better Retention Rates
Proper goals, right alignment with the organization, and constant growth are all sure winners among employees which will help in the retention rates for an organization. Lesser the people who quit, the lesser the time and money spent in hiring and training new folks. The ROIs become invaluable when employees stay in the organization for long periods and HCM plays an essential role in doing that.
When an employee works for an organization like it is her own company, she will handle anything that comes her way. And a good HCM process makes that happen. It makes the employees self-sufficient and independent through growth, which will lead to them handling any situation with confidence and proper knowledge.