What's the Difference Between HCM and HXM?

Decoding People Management: Explore these key distinctions in organizational management.

Your organization needs a clearly defined strategic approach to business and people management. In this article, we explore how Human Capital Management (HCM) and Human Experience Management (HXM) are related—and consider some important ways in which they differ.

What Is Human Experience Management?

Human Experience Management (HXM) is the process of collecting and analyzing data on the experience of people in a business setting, with the goal of improving the overall experience for employees, customers, and other stakeholders. This can include gathering data on employee engagement, customer satisfaction, and other metrics that can help a company understand and address the needs and concerns of its stakeholders.

HXM may involve the use of various tools and technologies, such as survey software and customer relationship management (CRM) systems, to collect and analyze data, as well as strategies for using the insights gained from this data to drive positive change within the organization.

What Is Human Capital Management—And How Is It Different?

Human Capital Management (HCM) refers to the process of managing and developing the people within an organization. This can include a wide range of activities, such as hiring and training employees, managing employee performance and development, and managing employee benefits and compensation. HCM is often seen as a critical component of overall business strategy, as a company's human capital is often seen as one of its most valuable assets.

While HXM and HCM are related, they focus on different aspects of managing people within an organization. HXM is more focused on understanding and improving the experience of employees, customers, and other stakeholders, while HCM is more focused on managing and developing the people within the organization.

Why You Should Focus on Experience Management

Employee experience matters, especially in times of disruption. It’s more critical than ever to visualize and fine-tune your people’s experiences. Doing so ensures you retain your talent and make your workplace welcoming, whether they’re working locally or remotely. Effective People’s team of experts believes that the SAP SuccessFactors Human Capital Management (or Human Experience Management) suite is the best solution for managing workforce data. It offers comprehensive support for all your people processes—from hire to retire, including employee experience, time management, and people analytics.

Why Work With Effective People?

At Effective People, our purpose is people. As a leading global provider of SAP SuccessFactors, HR advisory, and workforce management solutions, we help organizations across all territories and industries to drive better business outcomes, improve HR effectiveness, streamline payroll processes, and create great employee experiences. We’ve completed over 1,000 SAP SuccessFactors projects in more than 100 countries worldwide since 2005. Our 250 consultants cover all major industries and provide continued operational support and maintenance for more than 150 companies. Together with our customers, we’ve won 14 SAP Quality Awards.

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About the author

Marit Strømmen is the Head of Marketing at Effective People.

With more than 20 years of experience in the commercial area, she has worked with content, communication, business partnerships, and new business development in various industries. She has been with Effective People since 2018, overseeing all branding and marketing efforts. Marit writes about cloud-based HXM and HCM.

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