Human capital management (HCM) is the process of managing, developing, and optimizing an organization's workforce to achieve its goals and create value.

HCM takes a more strategic and integrated approach, aligning workforce management with business objectives and performance.

Key components include workforce planning, talent acquisition, performance management, learning and development, and employee engagement.

Technology can streamline HR processes, provide data-driven insights, and support employee self-service and collaboration.

Effective HCM strategies focus on developing employee skills, providing growth opportunities, and fostering a positive work environment to improve retention.

Companies use metrics such as employee engagement, turnover rates, time-to-hire, and performance ratings to assess HCM effectiveness.