HCM (Human Capital Management)

What is HCM (Human Capital Management)?

HCM (human capital management) is a category of enterprise HR software - an HCM system bundles core HR with payroll, recruiting, performance, learning, and workforce planning - built for large companies rather than SMBs.

The line between HCM and a core HRIS is mostly scope. An HRIS keeps the essentials - records, leave, compensation, roles. An HCM suite stacks talent, payroll, and planning on top, with the price and setup to match.

A typical HCM system includes core HR plus payroll, recruiting (ATS), performance reviews, learning management, and workforce analytics, sold as one platform with enterprise pricing and a multi-week implementation. That is the human capital being managed end to end, not just records.

SMBs are often sold an HCM suite and use a fraction of it. If the team mainly needs records, leave, and an audit trail, core HR covers that without the weight - or the price - of a full HCM platform.

Related terms

• HRIS (Human Resources Information System)
• Core HR
• HRMS (Human Resource Management System)
• ATS (Applicant Tracking System)

See also

• HREvio vs Personio
• HREvio vs BambooHR