What Is Human Capital Management? A Career Guide

Human capital management (HCM) refers to business processes that empower workers, connect workflows, and streamline daily operations within an organisation. It encompasses employee productivity strategies and HCM teams' technology to organise data. 

An HCM team or manager can benefit an organisation in several ways, including: 

• Increasing productivity among employees

• Retaining employees and keeping them engaged 

• Managing employee data 

• Enabling business growth 

Human capital management is becoming increasingly important, especially as work evolves relative to COVID-19. With more employees working remotely and increased demand for specialised skills and workforce data, HCM teams and managers can offer comprehensive support across an organisation and bring out the best in everyone. 

HCM vs HRM

While human capital management and human resource management are different entities, some organisations may use these terms interchangeably, given their overlap. Keep these important similarities and differences in mind as you consider career options:

HCM jobs 

There are several common roles in HCM. Consider the following as you explore this career field.

Human capital manager

Average annual salary in the UK (Glassdoor): £63,440 [1] 

Tasks and responsibilities you might have in this role include: 

• Providing employees with professional development opportunities 

• Offering services to employees such as counselling, coaching, and mentoring

• Creating job descriptions

• Devising plans to support and train underperforming employees 

• Recommending solutions to conflicts that arise among employees 

• Overseeing the company’s benefits program and ensuring employees receive the proper benefits 

• Providing employees with guidance on company policies and procedures 

Human capital consultant 

Average annual salary in the UK (Glassdoor): £50,473 [2] 

Tasks and responsibilities you might have in this role include:

• Advising organisations on how to improve their culture, leadership, compensation structures, and employee professional development 

• Analysing current workforce needs and trends that will determine recruitment strategies

• Training managers and supervisors on effective leadership strategies

• Conducting exit interviews with departing employees

• Developing strategies to improve employee engagement   

Human capital analyst

Average annual salary in the UK (Glassdoor): £39,302 [3] 

Tasks and responsibilities you might have in this role include:

• Analysing current HCM strategies within an organisation

• Evaluating current market trends and management strategies

• Helping organisations implement new HCM solutions 

As you gain experience in human capital management, you may find opportunities to fill more advanced positions, such as director or vice president of human capital. 

Organisations that have advertised positions for human capital managers, analysts, consultants, and directors in the UK include Deloitte, Accenture, the British Air Force, IBM, Paychex, Goldman Sachs, J.P. Morgan, Goodwill, UnitedHealth Group, Comcast, and Hewlett Packard Enterprise, among others. 

How to start your HCM career 

If you are ready to begin this career path, follow the steps below to streamline your process:  

1. Obtain an HR education and experience.

For most HCM positions, you’ll need at least an undergraduate degree. Degrees in human resources management are an excellent option. In your job search, you may find that some employers are open to hiring candidates with degrees in other disciplines, such as business or psychology. 

Consider taking courses or getting a qualification in human capital management and gaining some entry-level experience in an HR role, such as staffing coordinator, HR assistant, or HR representative.

2. Become proficient with human capital management software.

HCM software, sometimes called a human resource information system (HRIS) or human resource management system (HRMS), is a big part of how HCM teams operate. The software streamlines and simplifies many processes, including payroll, time tracking and attendance, performance management, record keeping, and more. 

Learning how these systems work can help you prepare for an HCM role. Examples of software that you can investigate include: 

• ADP HR software

• Ceridian Dayforce HCM

• Oracle Fusion Cloud HCM

• Workday HCM 

• Breathe

3. Build workplace skills for HR.

In addition to learning the technical skills of human capital management, you’ll also need solid workplace skills. As you take courses and gain experience, hone your ability to collaborate with others, lead teams, mentor new hires, solve problems, and develop rapport with coworkers.  

Having these skills can enable you to perform key HCM functions with success, including: 

• Recruiting the right talent

• Monitoring performance

• Offering training and professional development opportunities 

• Delivering a superior employee experience 

Improve your management skills with Coursera. 

Online courses can be a great way to build skills related to human capital management and discover career opportunities. Explore the options below: