Human Capital Management (HCM)

Learn about Human Capital Management (HCM) and more with Workstream and improve your hiring vocabulary. Workstream helps companies hire better, faster - everyday.
Schedule a Demo Learn more about workstream

What is the meaning of Human Capital Management (HCM)?

Human Capital Management (HCM) refers to a collective set of practices that an organization implements for recruiting, training, developing, managing, and retaining employees. The goal of HCM is to optimize the employees’ contributions to an organization. To understand human capital management better, let’s focus on the words “human capital.” HCM recognizes employees as the core of the organization. A company can have a great office, top-of-the-line technology, and a competitive product. However, none of that matters if it has no workforce. People are what makes an organization start, run, scale, and succeed. 

Why is Human Capital Management (HCM) important? 

Because HCM focuses on people and helping them become contributors to success, the practice of HCM is vital in an organization. It can lead to hiring the right people, employee engagement, management, retaining top talent, and increasing overall work productivity.

What are the different components of Human Capital Management (HCM)?

HCM is composed of a blend of administrative and strategic processes. These are: 

Administrative Support

Strategic support: 

Is Human Capital Management (HCM) the same as Human Resource Management (HRM)?

Although many use HCM and HRM interchangeably, they are not the same. The difference lies in their meaning. Human Resource Management (HRM) focuses on core administrative HR functions like benefits administration, records maintenance, payroll, attendance monitoring, and other administrative tasks. On the other hand, human capital management (HCM) has a broader scope that covers the employee lifecycle. HCM covers HRM functions plus other strategic processes like performance management, workflow management, training, and other functions. 

Another way of looking at their comparison is their purpose. The goal of HRM is to create and manage steps, systems, and processes that are needed to hire, train, develop, and help employees perform their job duties. For HCM, the goal is to maximize the value, contributions, and ROI of each employee to the success of the organization.

What do you mean by HCM Software? 

Human Capital Management software or simply HCM software refers to a technological application or system that helps HR teams manage the various functions and processes in workforce management. 

HCM software is also called human resource information system or HRIS. It helps HR teams by streamlining the process, saving time, effort, and money. It can help in the following areas: 

Businesses can select from a wide variety of HCM software. Because each company’s needs vary, there can be different HCM software suitable for each organization.

Try out Workstream to hire employees for
your business

A revolutionary hiring process for Hourly positions

A revolutionary hiring process for Hourly positions Hiring hourly staff in San Francisco can be a tough job. Workstream can help accelerate the process by letting you post on job boards like Indeed within seconds.

1-Click Job Posting

No more tedious copy and pasting. We integrate with all the top job boards. All applicants funnel into one intuitive dashboard.

Text-to-Apply Posters

Print out your unique QR code and text message number. Applicants scan/text to see all open positions and apply right away.

Automated & 2-Way SMS

Engage with applicants via text. Include links to screening questions, forms, and more. Use 2-way text to answer questions.

Endless Integrations

Connect Workstream to your calendar so applicants can schedule interviews. Streamline onboarding with background check & HR integrations.

Candidate Tracking & Scoring

View all your applicants and employees in one place. Make notes on their progress. Access their docs anytime from anywhere.

Customizable Templates

We provide templates for everything from job postings to offer letters. Send links to docs and tax forms via text message so new hires sign digital copies.

What other owners
think about hiring through Workstream

"Love you guys ♥️"

Willamette Valley Vineyards

Currently hiring on Workstream for:

Sous Chef

Tasting Room Associate/National Sales

Administrative Specialist


Jack in the Box (JIB SCH Franchise)

"Efficiently managing my team's accountability to getting back to applicants ASAP! "

M5 Partners Inc. dba. Jamba Juice