What Is the Difference Between HR and Human Capital Management?
Posted: Mon Jan 27, 2025 10:11 am
I have spent my entire career working in the HR space and I often see the terms HR and human capital management (HCM) used interchangeably. In fact, I am guilty of using these terms interchangeably. Perhaps as a result, members ask APQC: What is the difference between HR and human capital management?
In this blog, I explain what human capital management is and how it differs from HR. Then, I reveal HR and human capital management best practices and challenges identified via APQC research. At the end of the post, I share links to resources that can help you address HR and HCM challenges that your organization may face.
Human Capital Management (HCM) is the practice of managing australia mobile numbers list talent in ways that enable an organization to reach its strategic objectives. APQC’s Process Classification Framework®, a common taxonomy of business processes, includes the following process groups as part of human capital management (PCF category 7.0):
7.1 Developing and managing human resources planning, policies, and strategies
7.2 Recruiting, sourcing, and selecting employees
7.3 Managing onboarding, training, and development
7.4 Managing employee relations
7.5 Rewarding and retaining employees
7.6 Redeploying and retiring employees
7.7 Managing employee information and analytics
7.8 Managing employee communications
Human Resources (HR) is the organizational function with accountability for HCM (PCF category 7.0). HR leads the organization in managing talent to enable business objectives—from developing HR strategies (process group 7.1) to managing employee communications (process group 7.8). In addition to HR, business leaders and managers have human capital management responsibilities.
In this blog, I explain what human capital management is and how it differs from HR. Then, I reveal HR and human capital management best practices and challenges identified via APQC research. At the end of the post, I share links to resources that can help you address HR and HCM challenges that your organization may face.
Human Capital Management (HCM) is the practice of managing australia mobile numbers list talent in ways that enable an organization to reach its strategic objectives. APQC’s Process Classification Framework®, a common taxonomy of business processes, includes the following process groups as part of human capital management (PCF category 7.0):
7.1 Developing and managing human resources planning, policies, and strategies
7.2 Recruiting, sourcing, and selecting employees
7.3 Managing onboarding, training, and development
7.4 Managing employee relations
7.5 Rewarding and retaining employees
7.6 Redeploying and retiring employees
7.7 Managing employee information and analytics
7.8 Managing employee communications
Human Resources (HR) is the organizational function with accountability for HCM (PCF category 7.0). HR leads the organization in managing talent to enable business objectives—from developing HR strategies (process group 7.1) to managing employee communications (process group 7.8). In addition to HR, business leaders and managers have human capital management responsibilities.