HRM is part of expenditure, because there is a payroll system involved.

What type of information to keep in order to maintain an employee:
1. Name / Personal Information
2. Qualifications
3. Roles / Position
- current
- past
- desired
- (dates / start / end)
4. Courses Taken
- past courses (LMS)
- desired courses (LMS)
* Learning Management System
** Can also tie in with qualification.
5. Salary
- (dates / start / end)
6. Benefits
7. Vacation
8. Pension Information (would also tie with salary)

Human Capital Management understands that employees are an asset. Organizations have to make great efforts and establish processes with the help of an IS in order to maintain their employees. HCM is more than just an administrative cost, it is a strategic investment. Although assets need to be controlled, and make sure that the organization is providing returns from the investment.

HCM involves in recruiting.
Recruiting -> Hiring -> Attendance (manage) -> Compensation (manage) -> Benefits (manage) -> Training (manage) -> Leave / Vacation
The above are part of HR management process.

By applying their knowledge, skills and time they are the enablers to the goals of the organization.
As an organization, they want to maximize that value, the potential result from the human capital.

Payroll can be automated, because it contains a bunch of calculations (such as deductions, salary, and attendance). We need the right information at the right time when it is required. When it is automated, there will be significant time savings. One single source of information regarding employees is important for HRM and payroll processes.

HR function must reduce costs in staffing in general.

There are also outsource payroll systems in addition to internal payroll.

As long as there is correct information inflow, we can automate the processes.