Human Capital Management (HCM)

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HR Glossary

Human capital management (HCM) is the employee management wherein from recruiting, managing, developing and improving aspects of an employee are looked after. The employees are seen as assets and to manage these assets well, HCM became a catalyst tool.

HCM can be sub categorized in three categories:

  • Workforce acquisition: this includes employee recruitment, onboarding, payroll management, ESS etc.
  • Workforce management: this includes performance management, competency management, reporting and analytics, employee engagement
  • Workforce optimization: training and learning, benefits, reimbursement.


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