Human capital management (HCM) software manages all human resource (HR) information within an integrated, modular platform. Sometimes known as a human resource management system (HRMS), these tools offer functionality across multiple HR software categories. Companies use HCM to handle high-value HR functions, such as recruiting, performance reviews, and employee training, within a centralized system that streamlines HR management and reporting.
HCM software is most commonly implemented by HR departments within enterprise companies. Due to its modular design, it can be customized and organized according to organizational needs. HCM software can be purchased either as fully integrated suites or individual modules paired with one or more best-of-breed HR software products. Human capital management commonly offers a combination of core HR software, recruiting software, performance management software, and corporate LMS software.
To qualify for inclusion in the Human Capital Management (HCM) category, a product must:
Offer a series of modules that can be purchased separately
Include multiple modules that integrate to create a unified system for HR management
Provide functionalities across more than one HR software category distinction