Human capital management (HCM) means organizing employees and their skills, knowledge, and effort to achieve business objectives. Strategic human capital management (SHCM) goes beyond administrative HR management. It looks at every aspect of the employee life cycle to maximize the return on investment a company can derive from its workforce.
To achieve this goal, SHCM strategies aim to seize opportunities in employee recruitment, retention, and performance management. In this guide, you will discover HCM strategies for bringing the best out of your employees.
HCM strategies are tactics a business uses to leverage its workforce’s potential to achieve ambitious organizational objectives. These strategies shift the emphasis from expecting employees to execute individual duties toward organizing them to contribute to a shared mission. Key components of SHCM include:
Workforce planning is an aspect of your human capital management system that entails:
Strategic workforce planning can unlock several advantages for a business, including:
The most effective approaches to workforce planning are based on proven best practices and data-driven insights. Here are four practices to help you get the most from workforce planning:
HCM strategies must comply with all applicable regulations, including:
Consider working with an experienced compliance management partner to ensure your HCM procedures meet all regulatory requirements. SHCM software can help monitor and address any compliance gaps.
Effective SHCM can enhance virtually every dimension of business success, including productivity, profitability, and employee engagement.
Optimizing talent recruitment and management sets teams up for efficient work toward shared objectives. By bringing together creative minds with complementary skills, SHCM helps build cultures where excellence and innovation thrive. In this environment, each employee has the opportunities, support, and accountability they need to maximize their contributions. As they do so, the team’s collective progress drives KPIs like gross revenue and deadlines met.
SHCM is not only about getting the most out of employees. It is also about improving their work experience for greater job satisfaction, engagement, and retention.
For example, HCM strategies may include introducing new employee benefits, expanding professional development opportunities, and communicating with employees about how their contributions relate to broader organizational objectives. SHCM prioritizes recruiting employees who fit the team’s culture while continually improving that culture to help employees succeed.
Seasoned HCM consultants can help their partners implement several best practices for optimal results. These include building a team, implementing software, leveraging data, and prioritizing ongoing learning.
Appoint a dedicated team to craft HCM strategies and objectives, monitor progress, and take responsibility for the results. To access the right combination of expertise and perspective, this team could include internal HR professionals and outsourced HCM consultants. This team’s functions include forecasting recruiting needs, analyzing performance data, and planning interventions to address skill gaps.
An HCM software solution with workforce management capabilities reduces the time, effort, and money required for effective workforce management. Look for software solutions that streamline employee scheduling, payroll, and performance analytics. Your workforce management team can leverage insights from the software’s analytics for strategic planning.
Data-driven insights, based on analysis by experienced HCM consultants and innovative software, provide a solid foundation for effective, strategic HCM decisions. For example, analytics could indicate that a hotel receives more complaints about service speed at its restaurant during summer. This could prompt the HCM team to recruit and schedule additional servers for that season.
Design transparent, customizable employee progress pathways. Communicate with team members about the organization’s current priorities and ways they can drive success in those areas. Ensure all team members have the resources to expand their skills so they can seize opportunities for career growth.
Effective HCM strategies can enhance an organization’s productivity, engagement, and profitability. However, they require precise data-driven decisions about recruitment, compliance, performance optimization, professional development, and other complex areas. That is why your organization should partner with EDS Service Solutions for HCM strategies that drive success.
EDS Service Solutions is an experienced outsourcing partner for human capital management solutions, including:
Contact us to streamline your human capital management processes today.
