Human Capital Management (HCM) tools have undergone significant transformations over the past few decades, evolving from basic administrative systems to sophisticated, integrated platforms that play a crucial role in enhancing employee engagement and productivity. This paper explores the evolution of HCM tools, highlighting key technological advancements and their impact on workforce management. Through a comprehensive literature review and analysis of case studies across various industries, the study demonstrates how modern HCM tools leverage artificial intelligence (AI), machine learning (ML), cloud computing, and data analytics to foster a more engaged and productive workforce. The research also examines the challenges organizations face in implementing these advanced tools, including integration complexities, data privacy concerns, and the need for effective change management. Future directions are proposed to address these challenges, emphasizing the integration of emerging technologies and the importance of aligning HCM strategies with broader organizational goals. The findings underscore the pivotal role of evolved HCM tools in building resilient, agile, and high-performing organizations in today’s dynamic business environment.

Human Capital Management (HCM), Employee Engagement, Productivity Enhancement, Technology Integration, Workforce Analytics.