: the skills, knowledge, and qualifications of a person, group, or workforce considered as economic assets
If you’re familiar with HumCap, you know that we believe human capital is the most important asset to any business. The term human capital, as outlined in the definition, refers to the economic value of an employee’s experience and skills. There are many assets that contribute to affecting human capital such as education, experience, mental health, and other intangible qualities that make up the productivity and profitability of your workforce.
What are you doing this year to invest in your human capital? If we had to guess, it’s probably not outlined on your balance sheet… but we’re here to help! We know everyone is experiencing workforce challenges. An obvious way to increase your human capital is to hire more people, which, you know HumCap Recruiting can assist with that. However – the true value of a company stems from its people. You need to prioritize your human capital – invest in your people. Here are three actions you can take to improve your human capital management:
1.Invest in your employee’s learning
With a more educated workforce comes the ability to achieve more. Foster an environment for learning and provide ample opportunity for professional development within your existing workforce. You can provide coaching, trainings related to your industry, training credits for employee’s to pursue their own passions, and even sponsor additional certifications or degrees for your employees.
2. Learn how to connect with each employee
Ensuring your employee’s needs are met is critical to creating a culture they want to work, and continue working in. Find a way to personally connect with your employees to make sure you know how they are doing and that you know what is important to them. Everyone has a different learning style. Having this connection will not only ensure you have effective communication but in turn can help improve engagement and will help you to know what your employees value most. Benefits, nutrition, mentoring, career advancement… Do you know if your offerings are actually valued by your workforce? Whether you’re connecting 1:1, surveying, or implementing other communication tactics – there is no one-size-fits-all solution. Personalizing your interactions with your employees is essential to ensure your efforts are effective.
3. Stay innovative
Human capital can depreciate if there is failure to keep up with innovation. To make sure your human capital management efforts and processes are as efficient and useful as possible, invest in the right technology. There are countless new tech tools being launched year after year to help improve productivity, organization, professional development, and most likely that specific niche in your industry. Implementing the right technology can improve skill utilization, engagement, and even work relationships. This in turn will help contribute to improving your organization’s effectiveness and thus the quality of your employee’s work life. Among other things – HumCap has implemented RightNow Media for our workforce. Tech tools like this help to care for your employees and cultivate a healthy team by providing video resources to help individuals and teams both professionally and personally.
Is your business running with every person reaching their top potential? Imagine what that would look like. That’s what it means to increase and maximize human capital. With better human capital management, it is proven and believed that businesses can increase their productivity and in turn, profitability. Not every business can implement these tactics solely in-house. Human resources has moved far beyond just hiring, payroll, and benefits. HR in the modern workforce takes on many different forms, including human capital management.
What are you incorporating into your 2023 business goals? You know you have a dedicated friend in HR if you need help achieving your human capital goals this year. Click here to contact HumCap today to learn how you can start reaching your top potential.