On its basic level, human capital views the people working in a company as a valuable resource that needs to be properly managed. Like physical assets or finances, the employees of a company are vital to the company’s success.
Rather than view people as random individuals, human capital sees them as a collective resource that must analyzed, quantified, organized, and measured to ensure business success.
Here are nine ways human capital management works to support the company and its workers.
Recruiting. Human capital management begins with the recruiting process. Companies must have a clear understanding of the needs of the workforce in order to hire people who will fit smoothly into the job. They need to be conscious of the current crisis in human capital and the lack of qualified workers in many categories. Steps must be taken to work around shortages in many areas. And once you … Continue reading Human Capital Management – What is it?
The world of business is changing at a rapid pace. Fortunes rise and fall on how well companies can visualize the future trends in human capital and adjust to them. Here are seven up and coming trends to be aware of and possible ways to handle them.
Analytics and Job Assessment. With increased emphasis on core competencies, HR needs to better understand them and the essential knowledge and skills needed to support them. Their job is not just a people job, but a “keep the business going” job. As such, they may need to develop better ways of analyzing needed skills and knowledge for each job, assessing job effectiveness, and insuring each employee is utilized to the fullest. Global Growth. Talent management now occurs on a global level. As businesses monitor demand for key positions, they need to consider the best ways of retaining top talent. Do … Continue reading 7 Alarming Future Trends in Human Capital & How to Manage Them
As companies get leaner in this tough economy, managing human capital based on the company’s core competency helps businesses prosper and avoid costly mistakes. Already companies are narrowing in on their strengths and spinning off tangential divisions.
When human resources identify the knowledge and talent base essential to support and grow the core competencies, they add value to the company and ensure the most important people are nurtured and groomed. Managing human capital is best served by first understanding the skills and knowledge needed for each job and how that job promotes the core competencies of the business. It is immediately followed by a strong set of employee retention tactics to assure that employees are in the right job at the right time with the right skills.
It may involve creating a standard language for the skills, keeping skill information up to date, and creating a system … Continue reading 9 Powerful Benefits to Managing Human Capital
You’re looking for a leadership development program and are prepared to part with your hard earned money for it. In exchange, you want viable skills that will immediately produce results.
As you examine the different choices you have for an executive leadership development program, keep these six key ingredients in mind. It may be that you will need a combination of scholastic and company specific training to master all of these key requirements.
Maintain a competitive advantage in a fast changing world.Training and developing employees demands a constant inflow of fresh ideas. The last thing you need in a leadership program is outdated ideas. There are some essential and evergreen ways of thinking and managing and there are fads and flash-in-the-pan theories that are promoted, then discarded when they fail. Make sure your program offers time-tested and fundamental strategies. And that they show you how to incorporate these … Continue reading Executive leadership development program
Skilled employees that build your company are becoming as valuable as gold. There’s fierce competition for top talent. And with the cost of recruitment and training at stake, it’s critical to find a great fit for your company every time you hire. Your investment in Human Capital can find a higher degree of success when you consider these four factors.
Find better measured results. Companies are scrambling to find valid ways to measure skills and knowledge. The Society for Human Resource Management says, “The development of deeper levels of analysis to monitor metric outcomes, identify trends, leverage positive outcomes and intervene in or mitigate negative outcomes will lead to better overall human capital management.” As companies carefully assess their skills gaps and accurately measure the skills and abilities of those they want to recruit, they will have more success in hiring the talent that will perform well within … Continue reading Grow your Human Capital by Identifying Four Critical Success Factors in Recruitment
Sooner or later it will happen. One or more of your key people, probably the one you consider most indispensable, will drop the bombshell: she’s leaving. And you won’t have a clue what to do next. It’s one of the few business challenges that every company will face eventually. Unfortunately, it’s also a task that is usually neglected until an emergency arises, leading to business interruption, political maneuvering, and a host of related problems. Thus planning for succession is a tool every business should have.
Succession planning can be a touchy subject, often involving emotions, office politics, and a reluctance to face reality. While this scenario exists in almost every business, it’s even more prevalent in family-owned companies. Research shows that over 70 percent of family businesses fail to successfully transfer to the next generation. None of us wants to admit our own mortality, so we avoid … Continue reading Planning Succession Tool
Jack Welch said it best: “My main job was developing talent. I was a gardener providing water and other nourishment to our top 750 people. Of course, I had to pull out some weeds, too.”
Developing high potentials should be a top priority in any successful executive’s strategic plan. Writing in the journal, Leadership Excellence (May 2011), Louis Carter and Brian Fishel discuss talent development in business, based on the findings of their Talent Management Survey. Their research indicates that 82% of the companies surveyed had either a formal or an informal talent management program. How do you rate? Are you part of the 82%? Are your flowers flourishing? A good talent development program will accomplish three things: it will attract, grow, and retain top talent. Here are four action items that should be included in your plan.
Put people first. Of course your talent development and human capital … Continue reading Why Talent Development in Business Matters
Human capital focuses on the education, skill levels, and problem-solving abilities that make workers an asset to companies. As America continues to move into technical and service sectors, the question becomes: Does America have enough human capital to handle the jobs of the future?
In a word. No.
The Current Workforce Lacks Proper Skills
In order for our workers to compete at skilled levels, they need to be flexible, adaptable, quick learners, and problem solvers. Today, many workers lack even these basic skills.
A literacy study tested how well people could function in society, reach goals, and achieve personal knowledge with written information. They asked participants to explain what a newspaper article meant, to read a simple survey with percentages of yeses and no’s, and to figure out how much it would cost to carpet a room given dimensions and cost per yard.
Testers placed scores on a scale … Continue reading Human Capital Crises & Danger for America’s Future
The daily demands of tight deadlines sometimes reduce our focus to the here and now. But good leadership requires long-range planning to insure important preparations are put in place before they are needed.
One way to insure your succession plan is functional and in place is to hold an organization wide assessment. Here are seven reasons why you want to assess your succession plan immediately.
Attrition happens. Good companies prepare for it. Key employees leave companies. Your succession plan can evaluate who is at risk for departure. Are they due to retire? Do they have high demand skills in an underpaying job? Your assessment can reveal if you have properly prepared and trained leadership waiting in the wings to move up. Reduce company costs of hiring and training. Examine your company’s history of job transitions. How are your year-to-year costs of training and hiring expenses? Are they trending … Continue reading Succession Planning Assessment