Core Human Capital Management vs Traditional HR

Core human capital management is a strategic approach that focuses on the development and growth of employees, rather than just managing their day-to-day tasks.

This approach is in contrast to traditional HR, which often gets bogged down in administrative tasks and paperwork.

Traditional HR tends to focus on compliance and risk management, leaving little time for strategic planning and employee development.

As a result, employees often feel undervalued and unengaged, leading to low productivity and high turnover rates.

In contrast, core human capital management prioritizes employee growth and development, leading to increased productivity and job satisfaction.

Core human capital management is a strategic approach to workforce management that involves creating learning experiences, developing an inclusive people-first culture, and optimizing employees' skills and capabilities to produce economic value.

Human capital management views the function of HR as an interconnected ecosystem worthy of investment, taking a broad view of employee management and focusing on maximizing employee potential.

This approach is essential for businesses that want to nimbly manage skills needs and gaps while engaging talent to deliver on shifting strategies.

Organizations that employ human capital analytics enjoy 25% higher profitability levels compared to those that don't.

By using human capital analytics to support decision-making, businesses can elevate their HR system and capabilities to better support business strategy.

Human resources management (HRM) and human capital management (HCM) share the same focus, with both being concerned with workforce needs and employee performance to drive business success. However, they have some notable differences.

At a basic level, both HRM and HCM encompass core HR capabilities, including payroll, benefits management, recruiting and hiring, onboarding, and labor law compliance. HRM and HCM both involve talent management, including performance management and training. They can also support the needs of small- and medium-sized organizations.

Here are some key similarities between HRM and HCM:

Human capital management (HCM) views employees as strategic assets who create and deliver value to the business. This approach considers people as the most important company asset.

A happy and engaged workforce is a productive and innovative workforce, according to HCM practitioners. This is because a happy workforce is more likely to contribute to the business's success.

HCM focuses on a skills-based approach for strategic workforce planning, providing learning opportunities for career development, and building a diverse, inclusive culture. By doing so, businesses can attract and retain top talent.

Here are some ways CHROs and other HR leaders can leverage HCM solutions to achieve business objectives:

Human resource management (HRM) and human capital management (HCM) share a common goal: driving business success through workforce needs and employee performance. Both HRM and HCM encompass core HR capabilities, including payroll, benefits management, recruiting and hiring, onboarding, and labor law compliance.

Both HRM and HCM involve talent management, including performance management and training. This means that organizations using either HRM or HCM can expect to see improvements in employee development and retention.

HRM and HCM can support the needs of small- and medium-sized organizations, making them accessible to businesses of all sizes. The advantage of leveraging a cloud-based solution like Workday HCM is that it scales to meet the changing needs at every stage of growth.

Here are the key similarities between HRM and HCM:

These similarities highlight the importance of having a solid HR system in place, regardless of whether it's HRM or HCM. By focusing on these core capabilities, organizations can lay the foundation for long-term success.

Human resources management (HRM) and human capital management (HCM) are two distinct approaches to managing your workforce.

HRM typically focuses on day-to-day people management functions and administrative duties, while HCM takes a broader outlook that includes strategic talent management and viewing employees as valuable assets to be developed.

The view of employees differs between HRM and HCM, with HCM practitioners seeing employees as strategic investments that deliver returns in the form of economic value and employee satisfaction.

HRM is more focused on the day-to-day administration of learning management systems, whereas HCM considers the long-term development of employees.

HRM systems, like HRMS, typically handle payroll, applicant tracking, benefits, and performance management, but HCM systems offer more capabilities and insights by integrating data across HR functions and other software applications.

HCM systems are designed with cloud computing at the core, allowing them to adapt to changing workforce and business requirements.

Here are the key differences between HRM and HCM:

Effective leadership is crucial in Human Capital Management (HCM). A proficient leader can make a significant difference in achieving HCM goals.

Proficiency in leading HCM systems is vital for success. With deep expertise in the leading HCM systems, technology can work as a catalyst rather than a hindrance.

Human Capital Management is a key area where leadership proficiency can make a significant impact.

Human resources management (HRM) and human capital management (HCM) are two related but distinct concepts. HRM views the practice of HR through a tactical lens of policies and practices, encompassing traditional administrative duties relative to current and prospective employees.

Both HRM and HCM support daily HR operations to achieve business goals, and they increasingly rely on technology to optimize productivity and efficiency. However, HCM takes a more strategic and elevated approach to workforce management, involving strategic workforce planning, creating learning experiences, and developing an inclusive people-first culture.

The human capital ROI is substantially higher in organizations that use human capital analytics to support decision making, with 25% higher profitability levels. This is because HCM views employees as important strategic assets who can create and deliver value to the business through their skills and expertise, ideas and energy.

Some key similarities between HRM and HCM include:

However, HCM goes further by taking a more holistic approach to managing employees and development, focusing on a skills-based approach for strategic workforce planning, providing learning opportunities for career development, and building a diverse, inclusive culture.

The Human Capital Management and Leadership program at Miami is academically aligned with the Society for Human Resource Management (SHRM). This alignment ensures that students graduate with skills and knowledge that are relevant and valuable in the HR field.

Miami's Human Capital Management and Leadership major gives students essential skills they can use on a daily basis as human capital professionals. These skills include fundamental human capital concepts such as Change Management and Talent Management.

The major also helps students build key collaboration and problem-solving skills, which are foundational to consulting. By combining HR and Talent concepts with strategic applications, students are set up for success in their careers from day one.

Through case studies, group projects, and article discussions, students learn necessary concepts within the HR field and how they relate to optimal organizational effectiveness. This hands-on approach helps students apply what they've learned to real-life scenarios within the workplace.

RCM Human Capital Management has a long-standing partnership with UKG, delivering Workforce Ready (WFR) Implementations through our team of customer-facing trained consultants.

Our relationship with ADP started in 1995, making us a certified Professional Services partner in both National and Major accounts.

We provide subcontracting services to UKG clients, offering specialized, high-quality, end-user training services to fit their unique requirements on the full suite of Workforce Ready (WFR) and project management support.

As a certified Professional Services partner for ADP, we support clients on all ADP HCM platforms, including older legacy systems and the newest offerings.

Businesses that implement core human capital management (HCM) solutions can achieve significant benefits, including improved data-driven decision-making. By leveraging AI and machine learning capabilities, organizations can surface insights from vast workforce datasets and make informed decisions.

For instance, global companies like Levi Strauss & Co. have transformed their HR through HCM systems, achieving business objectives while doing so. This highlights the potential of HCM to drive workforce agility at scale.

The right HCM platform can map the workforce skills landscape, identify gaps, suggest training, and align talent with opportunities across the organization. This approach supports a skills-based approach to talent management, helping businesses meet the challenges of talent crunches and an accelerating pace of change.

Here are some key benefits of implementing core HCM:

Both HRM and HCM help ensure organizations recruit and retain the right talent, enabling employee and business success.

Businesses like Levi Strauss & Co. have achieved business objectives while transforming HR through HCM systems.

HCM software can map the workforce skills landscape, identify gaps, suggest training, and align talent with opportunities across the organization.

This drives workforce agility at scale and supports a skills-based approach to talent management.

AI and ML capabilities in HCM platforms can help businesses meet talent crunches and an accelerating pace of change.

Global companies like Club Med have been able to identify and retain top performers using HCM platforms to support their digital transformation strategy.

Top performance in HR requires the right technology to flexibly meet each organization's unique needs.

Cornerstone customers have achieved remarkable success with the help of their HCM solution. For instance, Porcher Industries has been able to thread innovation with employee growth worldwide.

Their HCM platform has enabled them to map the workforce skills landscape, identify gaps, and suggest training, which has helped them stay ahead in the industrial landscape. This is a great example of how HCM can support a skills-based approach to talent management.

Cornerstone customers like Porcher Industries have been able to achieve business objectives while transforming HR through HCM systems. In fact, global companies such as Levi Strauss & Co. have also achieved similar success.

The Cornerstone Thought Leadership and Advisory Services team (TLAS) met with over 200 customers from 155 unique organizations during a series of skills workshops in 2022. These sessions provided valuable insights into how customers are developing and implementing their HCM strategies.

Here are some of the key takeaways from these workshops:

These success stories demonstrate the benefits of using an HCM solution like Cornerstone's. By leveraging AI and ML capabilities, customers can drive workforce agility and achieve business objectives.