Human Capital Management (HCM) comprises an entire range of systems, including talent management people processes. It is a foremost business approach that recognizes people as assets whose current value can be measured and whose future value can be enhanced. A key HCM competency is the ability to anticipate workforce and talent needs in order to avoid organizational performance calamities. 
 

More than 50% of organizations believe that HCM professionals have succeeded in making HR more strategic to the business; yet there is still a long road ahead for many companies. 

Research continues to demonstrate that in order to meet operational needs, confidently address business challenges, realize organizational growth and keep your customers happy - selecting, hiring, deploying, developing and retaining the right people for the right jobs is imperative.

An Aberdeen study published in 2013 of nearly 300 organizations, looked at the key strategies, processes, procedures, methodologies, technologies and capabilities utilized by Best-in-Class HR and talent management practitioners, and the positive impact of those activities on business performance.

Best-in-Class Performance
Aberdeen used the following three key performance criteria to distinguish Best-in-Class companies for Human Capital Management: 

• 85% of employees rated themselves as "highly engaged" in their most recent engagement survey
• 74% of key positions have a ready and willing successor identified
• 13% year-over-year improvement in hiring manager satisfaction

Results revealed that the firms enjoying Best-in-Class performance shared several common characteristics, including: 

• Establishing a proactive partnership with the business and including business stakeholders in HCM strategy
• Integrating workforce management and talent management strategies through a holistic approach to HCM
• Automating critical HCM initiatives in a way that supports existing people strategies
• Identifying the gaps between the supply and demand for talent through strategic workforce planning

Required Actions
To achieve Best-In-Class performance, Aberdeen cited, in addition to other specific recommendations, that companies must: 

• Standardize processes for both workforce and talent management
• Combine workforce and business data to drive organizational growth and performance
• Invest in technology to lift the administrative burden off HR, create better efficiencies and provide a positive user experience

Planning for the future, being prepared for unforeseen changes - internally and externally - and aligning talent strategies with business strategies are some of the ways 21st century HCM fosters a culture of innovation and defines its future.