What is HCM (Human Capital Management)?
Software for managing the complete employee lifecycle — recruiting, onboarding, payroll, benefits, performance, and talent management.
Definition
Human Capital Management (HCM) is a set of practices and software for managing the complete employee lifecycle. HCM covers core HR (employee records, org structures), talent acquisition (recruiting, onboarding), workforce management (time tracking, scheduling), payroll and benefits administration, performance management, learning and development, and workforce planning. Modern HCM platforms use AI for talent analytics, predictive retention, and skills gap analysis.
How HCM Works in ERP
Some ERPs include comprehensive HCM modules (Workday, Dynamics 365 HR, SAP SuccessFactors), while others offer basic HR and integrate with dedicated HCM platforms. In a full-suite ERP, HCM shares data with finance (labor costing), project management (resource allocation), and manufacturing (workforce scheduling).
ERP Vendors with Strong HCM
Workday
Cloud HCM + financials for services and people-centric orgs
Microsoft Dynamics 365
Modular ERP + CRM tightly integrated with Microsoft 365
SAP S/4HANA Public Cloud
Standardised cloud ERP with quarterly auto-upgrades and low TCO
Unit4 ERP
Cloud ERP for people-centric and public-sector organisations
Frequently Asked Questions
What is the difference between HCM and HRIS?
HRIS (Human Resource Information System) focuses on core employee data and transactions. HCM is broader — it includes HRIS plus talent management, workforce planning, performance management, and strategic HR analytics.