Human capital management (HCM) is a holistic approach toward understanding talent within organizations. HCM is the active process and strategy used to measure and understand an organization’s human capital. Although related to human resource management, HCM is differentiated by its focus on people’s value to the organization and its vision, rather than ensuring compliance and effective administrative functioning.

Strategic Human Capital Management covers several areas of organizational effectiveness, including workforce planning (recruiting, onboarding, retaining, etc.), learning and education, performance management, and competency management.