Human Capital Management (HCM)
Human Capital Management or Talent Management – What am I interested in?
Human Capital Management software solutions are often synonymous with talent management solutions. As this software industry is still maturing, different camps have clung to either of these terms. So expect to see Human Capital Management and Talent Management used interchangeably.
Human Capital Management may more broadly cover all areas of Human Resources Management. In many references, Human Capital Management refers to the ‘Four pillars of Talent Management’ plus other key HR functions like Employee Relations, Labor Relations, & Separation Management. Talent Management solutions typically do not focus in these areas. Integrated Human Capital Management software solutions rarely do either, for that matter. Regardless, Human Capital Management could be all encompassing, while Talent Management solely focuses on the talent acquisition, development and management aspects.
Human Capital Management may also carry a negative connotation in some work environments. Some employees may not want to be referred to as an organization’s human capital. So the term Talent Management is emerging as this software industry’s norm.