Human capital management refers to the processes and standards by which human capital, or talent, is managed. The concept was developed by economist Gary Becker and labor economist Jacob Mincer. Human capital is the total set of abilities, skills, habits, forms of knowledge and behaviors that contribute to the labor process. Human capital is a prime factor driving economic growth. It is managed by Human Resources (HR) departments in the recruiting, hiring and talent deployment process. This overall practice is commonly referred to as human capital management. HR professionals can better manage human capital with Human Resources
software, such as ATSes.
What Is Human Capital?
Human capital is the sum total of a candidate's skills, talents and abilities. Together, these produce an economic output for a business, and for the economy as a whole. Human capital can be measured and studied to determine its efficiency, rate of return and other attributes.
HR professionals can scientifically gauge an individual's suitability for a project using human capital metrics. Some schools of HR thought believe that human capital should be judged according to a specific job assignment, not in general.
Human capital has become a powerful tool for understanding the factors driving recruitment, hiring and trends in the labor market.
Each individual has different competencies, strengths and abilities. Human capital refers to the skills, social behaviors, professional goals, personal habits, and other labor-related aspects of a human being, all of which can be mustered in workforce operations. Thus, human capital management refers to the overall procedures by which teams can be best built and managed.
What Is Human Capital Management?
HR software is truly, tremendously important. It is the DNA of any strong, flourishing enterprise. And in today's market environment, any strong enterprise must have the right software solutions. The market moves fast, and so do your competitors. They move fast because they're powered by smart technology. So when it comes to the HR, you need that smart technology too.
Automation is technology that transforms your organization by performing tasks that you would normally perform manually! This saves time, reduces stress and creates a standardized and reliable process. Ease-of-use refers to the software's user experience. Does the workflow feel smooth and natural? Then its ease-of-use quotient is high.
HR Software: Customer Support
In that light, human capital management can be understood as the set of best practices for engaging an organization's workforce. When recruiting, managing, communicating with and developing human capital, such a set of best practices can be very useful. Human capital management refers to the creation and standardization of such practices.
With good human capital management, Human Resources professionals can identify and support those candidates with the greatest aptitude for leadership. They can also find those candidates who are best at executing established processes.
How can you achieve that? You need smart, flexible but standardized human capital management practices.
But where are such practices and processes stored? In the minds of HR managers? In today's talent-driven environment this may pose a "knowledge gap" issue. For organizations who strive to succeed in the modern talent acquisition and management space a systemized approach is necessary. Today's technology allows for this to become a reality.
Human Capital Management Technology
Having human capital management-centric technology enables organizations to succeed. Rather than storing best management practices in the minds of individuals, HR and staffing firms with recruiting software
have access to consistent, systemized, and objective resources. These resources digitize best practices, stabilizing them on cloud computing networks, thus rendering them accessible for any recruiter, back office professional or HR manager.
In essence, human capital management tech standardizes an organization's best practices. From recruiting to management to back office processes, workforce management techniques can be easily configured, defined and stored on a system of record. This system will enable the recruiting team to make recruiting, hiring and management decisions according to a single standardized workflow.
Human Capital Management Workflow Tips
Turn to experts in developing HR systems of record with optimal performance.
Should you wish to explore the most advanced human capital management technology available, request a demonstration of JobDiva
today. JobDiva helps transform your organization into an agile, adaptive recruiting powerhouse.