Which Processes are Used in Human Capital Management?

Which processes are used in human capital management?

Human Capital Management covers a wide range of strategic and administrative practices and processes. The most important processes in HCM usually include the following:

1. Personnel planning (Workforce planning)

This process includes analysis, forecasting and planning of the organization's future personnel needs, identification of necessary skills and competencies and determination of the optimal size and structure of the workforce.

2. Recruitment

This process involves identifying and recruiting people with the necessary skills and qualifications who fit into the organization's culture. It includes activities such as job analysis, candidate screening, interviews and job offers.

3. Onboarding

Once the candidates are employed, onboarding is about giving them a good start and introduction to the organisation. This may include activities such as signing documents, introduction to the company's guidelines and culture, as well as training and education.

4. Performance Management

This process is about goal setting, performance evaluation, feedback and recognition (and reward) of employee performance. It includes activities such as setting goals, KPIs and development interviews.

5. Competence development

This process focuses on improving employees' competencies, skills, knowledge and abilities. It includes activities such as training programs (learning-paths), workshops and e-learning to support individual development and team development.

6. Engagement and retention

This process focuses on creating a positive work environment, promoting employee satisfaction and retaining the best talent. It includes activities such as employee surveys, pulse surveys and feedback, as well as processes to strengthen work/life balance and employee well-being.

7. HR analytics

In this process, data and analytics are used to measure and analyze various aspects of HR and management. It involves measuring key HR metrics and data, analyzing workforce trends, and making data-driven decisions to optimize HR strategies and processes.

All these processes are connected and form a unified framework for effective administration of the organisation's employees. When all this is done in the right way, it can both contribute to engagement and well-being - and at the same time help ensure that everyone works as efficiently as possible towards the same goals.