7 Tips to Successful Human Capital Management

Human capital management is becoming more prevalent in the last few decades and is increasingly talked about in corporate circles. Understanding and measuring human capital management comes from a sociological perspective and is extremely useful in successfully supporting staff and helping the organization.

What Is HCM?

To understand how to best manage human capital, you first need a good understanding of what it is. 

What is hcm? Good Question. 

Human capital definition is what an employee brings to the organization. Human capital examples include their talents, skills, experience, and qualifications that define what they contribute to the organization. Human capital is an economic activity. 

While this notion is very human-centered, it can be measured and managed. Any form of capital can be measured and developed and comes with a return on investment. While targeting employees as capital seems harsh, it actually gives HR the ability to focus on the employee as well as their well-being and performance.  

If human capital is about staff worth, then what are human capital management services? This is simply another name for Human Resources Management. It’s a strategic division of an organization that develops strategies to improve personnel and quantify their worth. A human capital management system determines how to get the most out of staff in various capacities.

Tips for Successful Human Capital Management

Managing staff to the best of your ability brings havoc to the organization if not done properly. Here are some basic tips to help you be successful in the process:

Utilizing Human Capital Management Software for Hiring

Employees don’t start intending to be a problem. They want to be liked, appreciated, engaged, and successful with their work. But if the wrong person is placed in the wrong position, there’s a problem. An employee can have the best intentions of being the perfect staff member but if the position doesn’t suit them, issues will arise.

A person cannot be successful in a job if they don’t have the correct skillset for or if they are lacking the motivation to do it.

You need to use tools to help avoid this issue. Using human capital management software can assess motivation and skill, like offering a psychometric test or a reference model that gives an indicator of what works for your company.

Bosses have influence.

People leave bosses, not their company. Period.

Even if you have been able to place the right person in the right job, HR needs to make sure that a positive relationship between the manager and the employee is maintained.

This can be easy if they hit it off right away but becomes a problem if they don’t. HR can help managers hone their management skills to avoid this issue.

Developing these skills is a long term solution that will benefit more than one employee along the way.

Continuous education.

No one should stagnate in their organizational role. Learning should be promoted and praised.

Every position and business has a constant learning curve as the world and industry change. Managers can help by being a teacher to their staff. A good HMC system facilitates training to help managers become good staff coaches. This not only builds the relationship between manager and staff but helps staff learn to attain their full potential. Managers acquire the ability to communicate well, be clear with instructions, encourage positive behavior, share what they know, and be constructive without offending. They learn to help offer solutions when there are problems.

Not every one that becomes a manager has this extensive skill set but HCM can help them attain it.

There is no “I” in team.

Now that you have found the right employee for the right role and they have a solid manager, you need to make sure they fit in with the team.

An employee cannot achieve their full potential on their own. Teamwork maximizes performances in many ways. This in no way implies that everyone should be cookie-cutter images of the person next to them but skills and personalities should complement each other so the team performs at its highest potential.

HMC can help managers manage their teams through training and skill development. Build on the team’s strengths and their ability to work together as they support each other and work to meet common goals. An HCM system can do this with proper training and support.

Check out The Best HR Software To Create A Better Workplace in 2019 to assist in creating the best hr workplace.


Employees want to know they are appreciated, cared for, and not going to be betrayed. Building mutual trust and transparency are important.

If you are constantly questioning, looking over shoulders, and testing your employees, they will return that distrust. If the company is going to get their best performance, employees should feel safe and secure in their position within the organization.

No employee can be perfect. Let them be imperfect and support them in bettering themselves.

HR Trends and Emerging Practices can speak to the importance of employee engagement and workplace appreciation within your team.


No matter how wonderful the staff and team are, they need clarity. A job can’t be done correctly if the team doesn’t understand the goal.

Expectations should be clear and encompass the company’s goal and vision within the team. Being part of a team means wanting to do well for that team and being present for its success. Help them know what is going on, participate in decisions, and celebrate victories.

Simplicity in Human Capital Management

Keep all your processes, teaching tools, and tech simple. Tools need to be easy to use to make sure people can access anything they need to better themselves and their team. People will not use things if they are complicated and time-consuming.

Talk to managers and team leads to make sure they have what they need. If you create a team mentality and communicate well with managers, they not only comply with what needs to be done but also commit as they see its value and ease of use.

Final Thoughts on Human Capital Management

Whether you are a small company with one person in HCM, a big corporation with an entire HCM department, or you outsource for hc management solutions, there’s always room for improvement. Staying current helps and being able to rely on other HCM professionals is beneficial.

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