Why is Human Capital Management So Important?

What is Human Capital Management (HCM)?

HCM is the systematic process of hiring the right human resource. Alongside that, with HCM, you effectively manage the workforce. Also, you can optimize the productivity of all the teams.

I will be discussing it more later on, so keep on reading. Now, let's learn why HCM is essential for an organization.

Why is Human Capital Management So Important?

If you can manage employees properly, they will become the lifeline of your company. Here are the top three reasons why HCM is crucial for a successful business.

Hiring the right person

It helps a great deal in terms of hiring talented employees. Moreover, you can manage, train, and retain high-performing employees. HCM makes the recruitment process way more manageable.

Moreover, you get to select the right talent for a specific role. That means you get to offer a role/job to the most suitable individual. As a result, you can avoid hiring the wrong person with little to offer.

Making new employees comfortable

After recruiting an employee, the first thing you need to orient them in the company. That means you help the employee navigate the new work environment instead of induction programs. A simple example of that can be—you can ask them about lunch.

Proving necessary training

HCM will assist you in training employees. As a result, you can make them valuable employees. Not only that, you can let the employees brush up on their skills so that they can work in your company for a long time.

Few other reasons are associated with the three reasons I just mentioned. Find out about them in the following list.

• Retaining talents
• Forming self-sufficiency in your employees
• Preparing them for challenging and adverse circumstances

HCM Software: Learn Further

Companies that deal with large-scale human resources generally opt for HCM. Anyway, there are a few terms related to HCM that you need to know.

For instance, HCM is often addressed as HRM (Human Resource Management) or HRIS (Human Resources Information Systems).

These terms are used interchangeably, but they are different in their nuisances. I will point them out to you one by one. But before that, you need to understand that HCM includes HRM.

Let's move on to the next part of the discussion so that you know what they are helpful for. First, I will start with the core features of the three systems.

• Managing payroll
• Recruitment
• Benefits
• Training
• Talent management
• Employee management
• Employee attendance

You must be thinking now—if all the systems have the same features, what's their use? Well, the idea is that HCM and HRIS are included under an HRM. In the next section, you will know about their fundamental differences.

Comparison of 3 terms

Now, we will take a good look at their difference. That way, you know when to use them.

HCM vs. HRM

You already know about HCM a little—bigger organizations use it because it's both HR and Compliance software. With this system, you can do the HR work and ensure international HR compliance.

On the other hand, HRM is used in small and medium-scale businesses. Basically, you can call it payroll management software. On a side note, we offer the best Payroll software in Bangladesh.

However, HCM has the options for managing the entire lifecycles of each employee in your company. Besides, in this infrastructure, you can access advanced analytics, benchmark data, and flawless reporting.

Overall, HMC contains more options that are essential for larger organizations. Considering that any HR system, HCM or HRM – both can identify problems, explore solutions, form requirements, validate selected employees, and so on.

HRIS vs. HRM

HRM is for essential HR & admin works. On the other hand, HRIS is an attendance management software that includes personal tracking, company benefits, duty time record, application tracking, etc.

All these features are combined with talent management, succession planning, and performance assessment. And all these features are parts of HRM.

What is PrismERP HRM?

We have highly efficient Human Resource Management Software in Bangladesh. And we offer HRM for various industries. Such as—

• RMG HRM: For garments business
• Corporate HRM: For companies
• Automobile HRM: For automotive companies
• Textile HRM: Garment materials selling companies
• Manufacturing HRM: Production businesses

Core Features of Our HRM

As a top payroll software in Bangladesh, you will get the following core feature from PrismERP.

• Employee management
• Attendance and time record
• Leaves and holidays
• Payroll and tax management
• Recruitment and training
• Provident fund and gratuity
• Budget and cost management

Benefits of Our HRM

These core features will allow you to execute different HR tasks. And that makes it the top payroll software in Bangladesh. So why not check out the benefits?

• Cost-effective solution
• Improved efficiency in an organization
• Control for forming roles and providing user access
• Improved productivity of your human resource
• Organized information sharing
• Error reduction
• Maintaining global HR compliances
• Better time management in terms of different processes and labor
• Checking payroll data
• Uninterrupted online and offline support

In a Nutshell

HRM software streamlines all the tasks associated with HR. And with the assistance of HCM and HRIS in HRM, you can ensure the desired growth of your organization. So, check out our HRM right now and witness the success of your company by managing your employees in a better way.