Human Capital

Human capital refers to the knowledge and skills employees possess, which a company can use to improve its products, services and brand. Often, employees are the most valuable asset to an organization. 

One important aspect of human capital is Human Capital Management (HCM) – a set of practices and strategies that involve managing the end-to-end employee lifecycle to optimize productivity, improve engagement and enhance business outcomes. 

Adopting a human capital solution often involves significant changes to existing processes, systems, and workflows. Consider the impact on employees, their readiness for change, and the need for effective change management strategies to ensure successful implementation and minimize resistance.

Just a few examples of key components of HCM are:

• Payroll
• Health benefits
• Retirement benefits
• Recruiting and talent management
• Employee training
• Reporting and analytics

By offering features such as wellbeing initiatives, employee feedback, and recognition programs, a human capital solution creates a supportive and engaging work environment. These features contribute to increased employee satisfaction, loyalty, and motivation, which, in turn, lead to higher retention rates. With a human capital solution in place, organizations can foster a positive employee experience, strengthen their employer brand, and ultimately retain their top talent for long-term success.

Organizations can gain valuable insights into their employees' performance, skills, engagement levels, and overall workforce trends by leveraging human capital data. It helps identify areas for improvement, forecast future workforce needs, and measure the impact of HR initiatives. The insights align their HR efforts with business goals, ultimately driving better outcomes and maximizing the potential of their human capital.

A human capital solution includes monitoring employee engagement and satisfaction, conducting sentiment analysis, and implementing feedback mechanisms to ensure an inclusive and equitable work environment.

Additionally, it impacts DEI by:

• Providing tools and features for tracking and analyzing workforce demographics
• Supporting inclusive hiring practices
• Facilitating DEI training programs

Quantify the value of your human capital by linking proposed human capital initiatives to business outcomes, relevant use cases and measurable KPIs - showing decision-makers a tangible impact story. Want to learn more? Read our insights article "How to maximize the ROI of HR".

Alight has a large library of case studies demonstrating how we provide human capital solutions for a wide range of clients. Our more than 16,000 colleagues span the globe, proudly serving 4,300 clients and their more than 36 million employees and dependents.

Yes.

Integration between human capital solutions and payroll allow for the efficient and accurate handling of employee compensation data. By syncing information between the two systems, organizations can automate processes such as salary adjustments, bonus calculations, and benefits administration. This integration ensures that employee compensation data remains consistent and up to date, reducing manual data entry and the risk of errors. Additionally, it streamlines payroll processing, improves payroll accuracy, and enhances overall efficiency in managing employee compensation within the human capital solution ecosystem.

A human capital solution supports remote workforce management and engagement in several key areas:

• providing access to HR tools and resources
• enabling virtual onboarding and training
• supporting remote performance management
• offering communication and collaboration features, and
• promoting employee wellbeing and engagement through virtual programs

Typically, implementation can range from a few weeks to several months. Timelines may vary depending on the complexity of the organization's HR processes, the size of the workforce, and the customization requirements.

Key considerations include:

• defining implementation goals
• conducting a thorough needs assessment
• selecting a suitable human capital solution provider
• allocating resources for data migration and system configuration
• ensuring stakeholder involvement and training, and
• establishing a phased implementation approach