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“Human Resource Management (HRM)” focuses on essential administrative human resource functions, like employee benefit administration, running payroll, state and federal employment law compliance, on- and off- boarding employees and maintaining employee records 

“Human capital” refers to people you employ. It’s all about their unique knowledge, experience, personal values, networks and connections, as well as their physical and mental health – and what value they bring to your company. 

“Human Capital Management (HCM)” takes that philosophy a step further and transforms the traditional and more administrative functions of HR departments (e.g., recruiting, training, payroll, compensation and performance management) into chances to drive engagement, productivity and business value. It envisions your employees as valuable business assets. Basically, HCM encompasses all activities related to recruiting, hiring, developing, rewarding and managing people to bring out the best in everyone to help a business thrive. This includes everything from creating and then expertly communicating the mission, vision, and values to professional employee development and training programs. 

In a nutshell, consider HRM as the foundation and structure of human resource administration that empowers HCM to grow and prosper.

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