The HCM Platform Designed With People in Mind

A human capital management (HCM) system in HR is software designed to manage and optimize the employee lifecycle, from new hires to retention and succession planning. It brings together core HR functions like payroll, time and attendance, absence management, benefits and performance management into one cloud-based or software as a service (SaaS) platform. By consolidating HR operations, HCM solutions help HR professionals automate workflows, reduce time-consuming tasks and align processes with business needs.

Modern HCM systems go beyond basic HR management by providing modules for competencies, performance reviews, workforce planning and labor costs tracking. Many providers now offer AI-powered tools that support data-driven decisions and real-time metrics for HR teams. This allows HR systems to improve decision-making, optimize user experience and integrate with enterprise resource planning (ERP) or other human resource management system (HRMS) platforms, making them some of the best HCM software options for HR leaders looking for all-in-one solutions.

HCM stands for human capital management. It refers to human capital management software that supports HR solutions such as payroll, benefits, time off, performance management and workforce planning. HCM systems combine core human resource management with functions that optimize HR operations and help HR teams manage the employee lifecycle more effectively.

Cloud HCM platforms and HCM suites provide HR professionals with user-friendly tools that integrate with a human resource information system. These solutions support initiatives like talent development, employee retention and compliance while giving HR teams the ability to make better decisions with data and automate key HR functions.

HR software often focuses on core functions such as payroll, benefits and time-off management. It helps HR teams handle daily HR operations and processes but typically has a narrower scope. Human capital management (HCM) software expands beyond these basics by including talent management, workforce planning, performance management and other modules that address the entire employee lifecycle.

isolved HCM provides an all-in-one, cloud HCM platform that combines core HR with broader human resource management functions. Unlike traditional HR software, isolved HCM offers integrated HR solutions, including succession planning, employee engagement and performance reviews, within a user-friendly system. This helps HR professionals align initiatives with business needs while gaining insights from data-driven metrics to optimize workforce strategies.

HCM, or human capital management, is broader than an HRIS, which stands for human resource information system. An HRIS focuses on storing and managing employee data for functions like payroll, time off and benefits administration. It serves as a database and system of record for HR operations.

HCM software includes the capabilities of an HRIS but extends into talent management, succession planning, workforce planning and performance reviews. Cloud HCM platforms and HCM suites give HR teams tools for decision-making, initiatives that improve retention and real-time insights into labor costs and competencies, making them more comprehensive than an HRIS alone.