Understand what human capital development is about
Put in its simplest form, it is a way of quantifying the economic value of a particular employee's specific skills. Like all forms of capital, this is also an essential element of your company's long-term assets. Ideally the skills of all your employees should meet the needs of the company and, more importantly, contribute to its intrinsic value. Investment in enhancing these skills can help increase employee satisfaction and commitment. In short, if employees feel management understands and appreciates them, they won't have any urge to escape to competitors.
The cost of human capital forms a large part of operating costs. However, most companies admit they do not invest enough in their employees, for example, through a series of training courses that could increase their qualifications. Keep in mind that you are investing not only in your employees and their development, but also supporting the company itself.
Help employees keep up with the skills they need
Human capital development plans often focus primarily on improving skills and competences or acquiring new ones. This approach makes sense for small businesses who want to start new investments in their workers. The investment is directly related to business as such: improving skills will increase productivity and thus benefit society as a whole.
You need to ensure your company's human activity keeps pace with its needs and the changing situation in your industry, simply to stay competitive.
Think of employees with static activities
Of course, not all employees will benefit from the possibility of developing skills. Many positions require some static form, such as operating a machine that does not change, or repetition as in sales. So look for other creative ways in which a company can help these workers and achieve other goals. For example, you might collaborate with organisations that provide foreign language learning, time planning courses, or health care.
Ensure the best working environment
Investing in human capital is also related to maintaining a harmonious workplace to help employees be more productive and happier. For example, make sure your workers have the best office furniture and equipment your business can afford. This will create a positive working environment as well as conditions for efficient work. In addition, you should think of appropriate lighting or sound conditions, which may also have an unpleasant impact on the work of employees. And if you decide to make changes, start with things your staff have agreed to.
Encourage HR specialists to create new investments
Who else should best assess what your employees need most, and also what area of investment they will appreciate? Encourage your HR professionals to create new ways to invest in human capital. Your first task is clearly to inform the personnel department that human capital development is a priority for the company management and then to ensure the target is adequately funded. With a well-set budget, HR can analyse different needs and opportunities for your business.
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