4 Behavioral Drivers of Agile Transformation

Human capital management (HCM) is one of many company functions evolving with the implementation of artificial intelligence (A.I.). As the industry evolves in the wake of new tech, human resource professionals are using A.I. to cut back on cost of time and resources.

Ultimately, A.I. is improving the human resources experience for candidates and companies alike.

what is human capital management

What is Human Capital Management (HCM)?

Not to be mistaken with human resources - which involves traditional company functions such as hiring, interviewing, and resource management - HCM focuses on performance, including all scales of employee-employer interaction. 

Companies use HCM strategies to oversee workforce management, collect employee data, and conduct workforce analytics. Each of these strategies falls under performance management, working to ensure that companies reach their full potential. HCM is not only a function, but a resource for companies and their employees. 

HCM is a set of practices that extends far beyond the search for industry talent and hiring a team. Similar to any other asset in the success of a company, human capital management must be continuously maintained, refined, and polished. 

But how does A.I. innovate these functions?

employee lifecycle (human capital management)

(Source: HR Technologist)


human capital management with a.i.

Human Interactions With Non-Human Systems

Virtually every industry across the globe - from consumer packaged goods to politics - is integrating A.I. technology into its business strategies. This means a couple of things for companies and employees. 

The reality is that adopting A.I. systems requires humans to become more conversational and comfortable with computers as coworkers, or at least, computers approaching the function of coworkers. How does this automation affect the experience of the company, candidate, or current employee?

Using A.I., human resource teams can spend far less time on manual functions such as resume screenings, and more time on strategic planning of company initiatives, which require human insights. Ultimately, the question becomes, “how can A.I. innovate productivity?” To understand that, it’s helpful to investigate HCM’s place in the employee lifecycle.

the employee lifecycle

Workforce Planning: The Employee Lifecycle

The employee lifecycle can be broken down into six phases. Innovative and effective human capital management strategies account for each phase evenly in an effort to deliver the best possible employee experience. Let’s take a look at each of the six phases, the role they play for employees and companies, and how A.I. is changing them.

human capital management step 1

Talent Acquisition Management

Acquiring strong talent often begins by developing strong employer branding. What perception do potential employees have of the company culture, its social initiatives, or the overall office environment?

Employer branding can come from a variety of different places, including word of mouth, representation of company culture, impressive company growth, compensation plans, and so on. HR teams - with the help of marketing teams - are continuously developing and showcasing their brand image to attract new talent. 

For example, companies tend to showcase their office culture on social media platforms or career pages such as Greenhouse. Companies can also use A.I.-powered talent acquisition tools to streamline hiring. Some examples include:

  • IBM Watson’s Candidate Assistant Tool. This system uses technology to scan through keywords in resumes to match potential candidates with the right jobs. It also helps filter out candidates that don’t match the job descriptions.

  • Textio’s Job Description Tool. Finding the right candidate can be tough without the right job description. This tool helps HR teams persuasively outline a role, and identify biased language that might discourage a qualified candidate.

human capital management step 2

A.I. in Employee Recruitment 

The recruiting process begins with opening up the floor to talent, and ends with hiring the candidate that will push the company forward. With hundreds - even thousands - of applicants competing for positions, this can be an incredibly meticulous and time-consuming process for HR teams. 

A.I. can help automate the recruitment process through machine learning and natural language processing systems. One example of this technology in action is Mya, an A.I.-powered tool that automates the candidate lifecycle, and empowers HR teams to focus on higher-level tasks.

a.i. in the workplace

(Source: IBM)

Of course, these technologies are not without their flaws. Some deficiencies - like in Amazon’s A.I.-backed candidacy review strategy - have done damage to brand reputations.

Last year, Amazon made headlines when they identified bias in their recruiting tool. After analyzing the way the brand’s technology reviewed applications in all roles, data revealed that the system was selecting resumes of primarily male candidates. 

Flaws like this have raised an industry-wide concern over the ethics of A.I. 

human capital management step 3

Onboarding New Employees

Onboarding new talent sets the tone for employee productivity. Whether starting at a large corporate company or joining a smaller startup team, the onboarding process is a key driver of employee engagement

HR teams are constantly coordinating with department leaders to ensure new hires are set up for success. Streamlining the training process, making sure employees quickly integrate into their new team, and checking in with online employee surveys (which are increasingly driven by A.I.) like Remesh are essential for a strong onboarding strategy.

human capital management step 4

Employee Skill Development 

Happy employees make happy clients, which means that employee skill set growth is critical to a company’s success. HR teams place a significant amount of time and budget on keeping their employees fulfilled, engaged, and producing high-quality work.

Improving employee engagement can be as simple as implementing employee recognition programs, or as advanced as targeted learning tools like Zoomi, which can measure the impact of improved skill sets and design personalized growth paths for employees.

human capital management step 5

Employee Retention Strategies 

Almost 90% of workers feel that a peer-to-peer recognition system increases their work satisfaction. A strategy like this could be executed by creating an active Slack page solely for kudos and shoutouts to other team members. Slack add-ons like Bonusly, which use a point system to recognize employees, can also be implemented.

peer to peer recognition ideas

(Source: Octanner)

human capital management step 6

Saying Goodbye (Feedback and Employee Advocacy)

This is the last stage in the employee lifecycle. 

Regardless of the terms of separation, this phase is a unique opportunity for HR teams to collect data and capitalize on the opportunity to improve their HCM strategy. Past employees can be valuable resources in recommending new talent to the company for future hiring.

In larger companies with more team members, employees are constantly transitioning out of the company into the next phase of their career. HR teams are using A.I. to collect larger amounts of this employee data, which is easier to analyze than traditional manual processes of collection.

human capital management strategies

Strategic Human Capital Management

HCM strategies encourage growth in their employees. Employees can develop their knowledge and skill set, or simply interact more positively in the office. 

Studies show that companies who spend a significant amount of focus on employee engagement tend to have more satisfied clients. Human capital management is a key asset in ensuring that this engaging employee environment is cultivated, developed, and polished as a company grows - just as a product might be developed over time.

Innovation in Human Capital Management

Innovation in Human Capital Management

HCM strategies live in a continuous state of development and innovation. But to understand innovation targets, reflect on a few objectives that HCM strategies aim to achieve:

  • Hiring speed and efficiency
  • Workforce acquisition and management systems 
  • Analyzing employee data
  • Internal organization of company 
  • Professional development training

a.i. and Human Capital Management

So, What’s Next for A.I. in HCM?


Technology advances each day, and in return, companies feel more secure using A.I.-powered systems to automate time-consuming functions. As industries continue to change and evolve with new tech, HR departments and HCM strategies will evolve with them.

Want to know how to keep your employees engaged, but don’t know where to start? Empower employees using A.I. with our eBook on the state of the industry.