Strategy · HR glossary

Human Capital Management

Human capital management, or HCM, is an approach to managing the skills, knowledge and capabilities people contribute to an organisation. The same term also describes suites of HR software.

By SmallHRTools · How we write definitions

Example

An employer links its skills inventory, development budget and succession plan to the expertise it expects to need for future projects.

What to keep in mind

Clarify whether HCM means a management approach or a software product. Buying a platform does not itself improve capability, and treating people as financial assets can obscure their rights and needs.

Human Capital Management

Example

What to keep in mind

Further reading