Maximizing your employees’ talent and managing human capital
Photo by Amos Bar-Zeev for Unsplash
Many companies give lip-service to the idea of people as their “greatest business asset” without fully considering what that phrase means. Employees join companies with a collection of skills, experience and untapped talents, but those qualities cannot become true business assets without a strategy for managing human capital.
What is human capital?
In a summary of its State of the Global Workplace survey, Gallup said “untapped human capital is the next great global resource” and that developing this resource can occur at the society, employer and individual levels.
The report goes on to assert that 85 percent of employees are “functioning below their potential.”
While technology can simplify and automate many business functions, it cannot replicate the creativity and intangible skill sets of human workers. As businesses invest in AI tools and other efficiencies, they must also consider how to make the most of human skills. According to a Deloitte workforce survey:
“41% of respondents are investing in automation extensively across multiple functions, with AI enabling human workers to focus on higher-value tasks.”
For managers and business leaders, the challenge lies in identifying and maximizing those higher-value tasks and matching the right people to those roles. In addition, encouraging employee development and engagement within their roles and the broader organization can result in greater levels of innovation and competitive advantages.
So, what goes into a strategic human capital management program?
Clear company goals
For small- to medium-sized businesses that have grown quickly, goals can sometimes come as an afterthought. If your business has taken on a life of its own, it’s time to create a clear vision of where you’re headed. Large companies tend to have a more developed process for setting and achieving goals, but even a well-defined path deserves review from time to time.
Without a clear picture of what a company or division wants to achieve, employees can feel adrift and underutilized. Well-defined goals, communicated throughout the organization, help set the standard for success. Your vision for the future also helps you define employee development needs.
Employee motivation
People perform at their best when they feel valued and challenged. Today, that means working with your employees to develop individualized career paths. A one-size-fits-all approach to career tracks doesn’t meet the needs of your workforce, nor does it help you activate individuals’ untapped potential.
Engaging employees begins with a strong recruiting and onboarding program and continues throughout the individual’s career with your organization. Your strategy should include components that address competency, performance, skills enhancement and learning.
In addition, consider ways to make life easier or more interesting for your workers. As this Entrepreneur contributor notes, employees with more static jobs tend to appreciate access to non-traditional benefits:
“Look for creative ways the company can help these ‘static skill’ workers reach other types of goals. For example, you could partner with other community organizations or businesses to provide opportunities for these workers to learn new languages, save money, plan and take a trip, or improve their health in some way.”
People want to connect with a sense of purpose, challenge and growth in their jobs. They will stay with an organization longer, and produce better work, if managers and leaders address those needs.
Alignment
When employees feel supported in their personal and professional goals, they tend to align their efforts with company goals as well. Research firm Aberdeen points out:
“Employees who are engaged in this way are more likely to be invested in the success of the company and will work harder to advancing revenue and reputation. In fact, according to Aberdeen findings, companies with a formal engagement strategy in place are 67 percent more likely to improve their revenue per full-time equivalent on a year-over-year basis.”
Executives and managers who have become skilled at managing human capital in this way can lead their organizations to new levels of success. Hiring top talent is only the beginning. You must know how to support and inspire that talent once they are on board to get the best results.
Need help developing an employee engagement and human capital strategy? Reach out to me to schedule a free consultation. I have worked with multinational companies to small start-ups in developing effective and powerful HR strategies that increase profit and impact.