Human capital is an intangible asset of a company, including the employees’ experience, knowledge, skills, and abilities. Similar to tangible assets (like equipment or buildings), human capital has economic value and brings benefit to the company.
Human capital management (in short: HCM) is organizational practices attempting to acquire, manage, and develop the human workforce (or human capital) within an organization. But, how can an enterprise optimise its human capital?
In this article, TYDE Consulting will help you identify 5 key practices that you should and shouldn’t do while managing your own workforce.
1. DO: Engage effective communication in the workplace
As communication is the key to every relationship, the HR department plays a crucial role when planning for human capital management. Especially, some employees may need more frequent talks and discussions than other workers in order to express their true expectations towards the organisation.
Therefore, the company needs to integrate an open and active communication way within the workforce to ensure better understanding & teamwork. Additionally, once your workers feel that they are being heard and respected, they will contribute their best to the shared goals of the whole company.
2. DO: Focus on employee capacity development
Managing talent is not only focusing on hiring potential candidates only. Great HR personnel also need to engage the existing employees to maximize their ability. Training courses for staff should be carried out regularly (ideally once a month or once a quarter). The basic topics can be concentrated on the current products/services of the company, new policies at work, ongoing projects… so that all employees can understand what their targets are.
Moreover, how to build a corporate culture together is another important training content to strengthen human capital. Company culture keeps every employee in solidarity to deal with challenges in a hard time. Besides, it also impacts how the employees see themselves in the big picture of the company and how they contribute to achieve the organisation’s mission and vision.
3. DO: Keep a positive and transparent approach at work
Economic and social changes will not only affect business growth but also employees. Therefore, engaging honestly with them about the changes in the businesses from time to time will help them align their work with the company’s priorities.
Then, proper recognition of valuable colleagues who have excellent working performance is another sign of a positive approach to human capital management. Being transparent with development opportunities for their career path is another way to motivate employees’ performance at work.
4. DON’T: Prioritize profit over development
Whenever a company needs to cut the cost of operation, the first item to be removed is training programs for employees. Don’t do this with your workforce! Employees’ capacity development impacts directly bottom-line profit, which also means the harder a situation is, the more you need to focus on human capital.
You can develop training sessions which can set the balance between the fee and the content on the long term. Also, recognizing employees who have remarkable development is a must.
5. DON’T: Keep a narrow-minded workplace.
The world is constantly changing, requiring companies to design flexible operational strategies accordingly. However, if HR managers don’t have the intention to embrace the change, the business will face struggles.
Without corresponding transformation with the present circumstances, there would be no innovation, no skills developed, and no chance for business opportunities.
TYDE Consulting: The expertise you need to master human capital management
As human capital management is vital for any business, HR staff needs to design and handle a suitable model for the organization. This process needs solid foundations in change management from development experts. Therefore, an outsourced HR consulting service may also assist the internal HR managers to refocus on delivering the right value.
With TYDE Consulting, you can identify and find tools to solve challenges with the workforce of your enterprise. We provide comprehensive development programs to help you:
- Have open and clear communication between the team.
- Ensure employees are equipped with interpersonal skills .
- Prepare a learning and development plan for your human capital
By enhancing these core strength, you can achieve:
- Better sale performance by empowering sale team strategy
- The stable working process between departments with effective communication
- Powerful impact in CSR project by winning community’s involvement.
Human capital management practices do not just ensure smooth workflow inside a business, but also, in return, it pays profits for the entire organization. Take measures to apply all the best HR models with the first step with TYDE’s services here!