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Human Resource Management (HCM) | Cloud HR Software – SOLTIUS

Human Capital Management (HCM) is a familiar term. Especially in the ears of HR professionals. Unfortunately for ordinary people, there are still many who don't know what HCM is and its function for companies. HCM itself is a form of resource management whose scope in terms of employment, acquisition and development of employees is much more effective.

In principle, HCM and HR are used as a division or part of a work unit that manages HR in the company, from recruitment, development, management to dismissal. However, there are fundamental differences in HR and HCM. So that you know Human Capital Management (HCM) in more detail, see some of the information below!

Functions of Human Capital

The Human Capital Management (HCM) function is to design a strategy aimed at building engagement. Human Capital also has the function of increasing employee loyalty and reducing turnover. Human capital clearly performs some of these functions because there is a big loss if the assets or investments invested in the company cannot develop and just leave the company.

By using human capital, employees can be assessed how their growth is and what kind of contribution they make to the company. With human capital, direct skill improvement can be carried out so as to make changes and developments in the organization or company. Broadly speaking, human capital is able to manage and develop the talents it has for the good of the company.

Benefits of Human Resource Management

If your company has not implemented human capital management, it is very unfortunate. That's because HCM brings many benefits to your company such as the following:

Improve Employee Retention

The first benefit of HCM is increasing employee retention and engagement. Generally, employees feel that they are not valued if they do not have the opportunity to grow and develop their potential. Even though the potential of employees is also really needed by the company to make it develop even better. It's no wonder that many employees leave their positions because there is no opportunity to grow.

Increase ROI

Unknowingly, every company invests in human resources through employee salaries and benefits. HCM has an investment strategy in HR that has a very positive impact on the development of business organizations both in the short and long term. The investment is known as ROI. Investment itself is able to provide new skills and expertise for employees so that productivity, innovation, competitiveness and employee benefits can increase.

Stronger Organizational Culture

Employee satisfaction and engagement can make the company culture more positive. With HCM employees can learn and have the opportunity to develop a career so they can enjoy working in the company. With this positive culture, employees can be more involved, feel happy and work productivity increases.

Increasing Employee Satisfaction

The main benefit of HCM is increasing customer satisfaction. According to a survey conducted, as many as 42% of 600 employees said the company's commitment to professional development is very important for job satisfaction. Therefore, the need for training programs and career development is as important as for employees. When employees feel the workplace cares about career development, employees can be more satisfied with their jobs.

After reading the article above, now you know how important human capital management is in your business company. To get the benefits as expected, you can use quality Human Capital Management (HCM) and adapt it to the needs of the company. You can entrust your HCM to SOLTIUS. This IT solution provider company is able to provide the best IT solutions for your company. SOLTIUS has been proven to help companies grow even more integrated. Use SOLTIUS services for more effective and efficient human capital management, click this link for more detailed product information.

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