HCM—A brief history
The term “human capital” was first used in the 1950s and 60s as computing began to accelerate the automation that had begun in the industrial age. Economists and business people began to see employees not as replaceable units completing routine tasks, but as knowledge workers with specific skills and talents that could fuel business growth.
Not surprisingly, the term returned to prominence with the rise of the internet in the late 1990s. New technologies were rapidly automating a whole new set of business processes. While the internet changed the how employers and managers worked and collaborated. All of this change meant that workforce leaders had to transform how they went about attracting, retaining, and engaging talent in an evolving set of job roles.
This decade could be called The Golden Age of HCM. New digital technologies are enabling HR leaders to provide a more engaging and personalized employee experience at scale. At the same time, emerging technologies, such as data automation, predictive analytics, and artificial intelligence (AI), have added new innovations for understanding, managing, incenting, and engaging the workforce. And HR leaders have a whole new set of tools that can maximize the value of their workforce, from intelligent, social-driven recruiting and personalized retention practices to highly optimized compensation.