Human Capital Management – A Process That Build Your Business
Any business is as good as the people it employees. This is why human capital management has become today a very serious business. This is the process that starts with recruitment and never ends. It never ends, because the process is designed to help employees to stay highly motivated, feel better and work better. It designed to “manage” the human capital or the human assets of the business/ company.
What Does Human Capital Management Do?
There are many activities that work in conjunction with one another to create a highly conducive work environment where employees would feel values, appreciated and encouraged to grow professionally and thereby work more productively and efficiently towards the promotion and growth of the business. The process is a long drawn and one that is designed to cover all the bases:
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1. Attracts the best talent available – the human capital management process starts right at the beginning with the strategy to attract the best available talent in the market. This means researching and identifying the people in the industry who show the highest potential for growth, measure and work out methods to make offers too attractive to refuse for them, and ensure that they do not leave the business for the competition in the same manner.
2. Designs appraisal systems that would be constructive and motivating – human capital management works on positive reinforcement and not punishment. Hence, the appraisal system too is geared to find out gaps, but not for punishment, but for facilitating the right kind of training to enhance their capability, skills and knowledge base.
3. Works out appropriate benefits package – if you look at the benefits package of the best work places in the world, you will find that these businesses are heavily biased towards their employees. This does not mean that you blow a hole in your bank balance to give your employees more that you can afford; what it implies is that you need to make them aware that you are doing your best for them. The feeling would be warmly returned once your employees internalize this fact.
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4. Encourages professional growth – each employee is encouraged to identity areas of interest in which they want to develop professionally. The human capital management principles are based upon the belief that if people are encouraged to follow their inherent talents they would be happy and in turn give their 100% to the business in all the aspects of work.