It's no secret that better, more prepared employees deliver superior results. But many companies still fail to invest in good human capital management practices. We aim to change that by educating you on the topic in this blog.
In the following paragraphs we'll explain what human capital management is, why it's valuable to organizations like yours, and how to make it a priority at your place of business.
Human Capital Management: A Definition
Let's start with a definition. Human capital management (HCM) is the act of systematically recruiting, managing and developing a workforce. An HCM mindset views employees as company assets to be invested in so that their organizational value can be maximized.
The important responsibility of HCM often falls on a company's human resources department, as they generally play a crucial role in who's hired, how efficiently talent is managed, and how seriously employee development is taken.
The Value of Human Capital Management
So why should HCM be a priority for your organization? What's its value? To answer those questions you first need to truly grasp the importance of your company's employees. They are the lifeblood of your business. Without them, nothing can be achieved.
When an organization's workforce is seen in this light, it becomes quite easy to see why human capital management is so valuable. A proper HCM approach will allow businesses to hire the best talent possible, maximize their potential, and further develop them for greater future success.
How to Prioritize HCM
Can we agree that an investment in human capital management is definitely worth it? Great! Let's talk about how your organization can prioritize HCM:
Create An HCM Culture
The importance of HCM needs to be understood by all decision makers at your company. If the c-suite isn't on board, you'll never be able to invest in your organization's employees the way you know you need to.
Have an honest conversation with your company's leaders. Do they see the value of HCM? If not, explain it to them. Once they buy in, you can begin to build an HCM culture and make it a top priority.
Emphasize Employee Development
If your organization's employees are viewed as assets, then it only makes sense to invest in them. The more skilled and knowledgeable they are, the more productive and successful they can be.
Always look for ways to further develop your company's workforce. What classes and training can you make available? Do you have any seasoned employees that would be open to mentoring new hires?
Not only will an emphasis on employee development allow your team to perform at increasingly higher levels, but it will also help you attract the best talent available.
A Gallup study conducted in 2016 found that 87% of millennials (AKA the new workforce) said professional development and career growth opportunities were very important to them in a job.
Secure Top Talent
A company that prioritizes HCM will continually seek out top talent and do what's necessary to bring them into their organization.
Today's workers want more than just a paycheck. A competitive salary is important, sure. But they also want professional development as we just discussed, great healthcare options and flexibility.
Even more than these tangible benefits, though, they want to feel useful. Modern workers want to be a part of a growing organization, whose bright future they can help shape. When hiring, be sure to communicate how the talent will play a critical role in your company.
Invest In HR Software
A quality HRMS system will make human capital management much more, well, manageable.
You'll be able to efficiently track and control employee data and quickly run reports when needed. The entire system will update itself in real time and onboarding new hires will become a simple, streamlined process.
There are many benefits to HR software, but few compare to the convenience and increased productivity it will afford your organization.
As an HR professional, proper human capital management is largely your responsibility. Work to implement it at your company!
Start by changing the culture around the way your organization thinks and acts about its employees. They are valuable assets to be developed. If necessary, convince upper management of this fact.
Also, always invest in top talent as well as a quality HRMS system. The former will take your business to new heights. The latter will help you do so much more efficiently. Good luck!