HRM Vs HCM: Objectives, Scope, Optimizing Both

In part one of this two-part blog series, we went over some of the basic differences between HRM and HCM for companies. HCM, or human capital management, deals with broad areas of employee management, while HRM, or human resource management (technically often considered a category of HCM), tends to focus more on the specific functions required to carry out that management.

At WTA Inc., we’re happy to offer a wide range of services in areas like these, from recruitment and hiring to immigration compliance and more. Today’s part two will dig a bit further into the key ways HRM and HCM differ, plus why it’s typically very important to manage both sides of this coin for optimal performance.

HRM HCM objectives scope

Objectives in Approach

As we lightly touched on in part one, one of the key differences between HRM and HCM lies in their respective objectives. Generally speaking, HRM is more focused on the day-to-day processes and procedures related to employees, while HCM takes a longer-term approach, aiming to build and retain an ideal workforce for the company’s present and future needs.

For instance, both these approaches have a role to play in training of new employees – but the HRM side of things will be more focused on making sure everyone is aware of the process, is familiar with the system being used to track progress and so on. On the HCM side, meanwhile, those same training materials are likely part of a larger plan for attaining certain goals or qualifications over time – such as ensuring all staff members have a certain degree of knowledge about the company’s products and services.

Scope of Services

Another key difference between HRM and HCM can be found in the scope of their respective services. As mentioned, HRM is typically more geared towards specific functions required to manage employees – so you’ll often find tasks like payroll, performance reviews and scheduling all falling into its domain.

HCM, meanwhile, takes a wider view – looking not just at the tasks related to managing employees, but also how those tasks fit into the company’s overall objectives and goals. Appraisals of employee performance might be part of HCM activities too, for instance – but in this case they’d be done with a view to helping the company reach its strategic objectives, rather than just ensuring individual employees are getting the most out of their job.

Absolutely Not Mutually Exclusive

If you take one thing away from this two-part blog series, it should be that HRM and HCM are absolutely not mutually exclusive. They’re both essential components of any comprehensive employee management strategy, and they should always be used in tandem to ensure maximum performance from your team.

At WTA Inc., we understand the importance of getting both sides right – which is why our services cover everything from recruitment and payroll to long-term employee development. If you’d like to learn more about how we could help your business, get in touch with one of our friendly representatives today. We look forward to hearing from you!