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The term "human capital management" (or HCM) represents the entire range of practices and processes for managing people in an organization—which is a superset of talent management (see "talent management" for more information).
To further explain, talent management refers to the organizational processes of recruiting and onboarding, leadership development, succession, performance management, pay for performance, career development, training, workforce planning, employee collaboration, and other organizational design-related practices and systems. In contrast, human capital management includes other practices, such as HRMS, payroll, workforce management (hourly scheduling), expense management, contingent workforce management, employee leave management, and other more administrative or transactional parts of managing people.
Today, the HR management systems market is broken into a wide variety of talent management vendors and another set of HCM vendors (companies with HRMS solutions). Also, HCM vendors often offer financial management software—because one of their values is to enable leaders to understand the "total people cost" of a program or function. HCM systems tend to look at people from a total, financial, and operational perspective, while talent management, which fits within HCM, focuses on the developmental practices of people. An organization can often function without a talent management software system for many years, but cannot function at all without some form of HCM platform.
These two markets overlap significantly and the lines become blurred by vendor marketing.
For more information on this topic, we recommend learning about our HCM Applications Implementation Maturity Model.