Human Capital Management or HCM is the process of investing in your employees and aligning their goals with those of the business. These goals can be achieved by investing in training and development. In addition, HCM focuses on identifying and nurturing existing talent to increase growth and achieve company goals. This investment will eventually benefit both the company and the employees. Employees are increasingly seeking additional training and development opportunities. Indeed, 94% of employees report that their employment tenure would increase if the company invested in their learning efforts.
Workforce planning
Workforce planning is a critical element of human capital management. It helps businesses identify talent gaps and ensure the suitable people are hired for the right jobs. It also allows companies to avoid making en masse hiring decisions. The workforce planning process begins with assessing the current team and its capabilities. It also includes a look at potential external talent pools.
People analytics
People analytics is an important tool for HR managers because it helps them identify and hire the best candidates for open positions. Good hiring decisions can make a significant difference in the organzation’s success. People analytics also improves employee satisfaction and performance. It can also be used to enhance diversity in the workforce.
Finding quality hires
As the COVID-19 pandemic showed business leaders, the importance of finding quality hires cannot be stressed enough. Without the right people, CEOs are unable to execute their strategic plans. To navigate the crisis, CEOs need resilient talent that can adapt to new realities. Thus, getting quality hires is a top priority for HR managers.
Influence on organizational KPIs
In this day and age, visionary leaders understand the importance of human capital management and are focusing more on this vital aspect of the business. When appropriately used, human capital has an impact on a wide variety of organizational key performance indicators(KPIs), including employee turnover, productivity, quality of work, and customer satisfaction. Gallup’s recent 2022 State of the Global Workplace report found a direct correlation between employee engagement and a host of business outcomes. It also revealed the importance of a company’s culture.
Performance reviews
When delivering human capital management performance reviews, the goal is to be thorough and encouraging. The manager must be able to provide feedback and motivation in a constructive manner, but there should also be a sense of responsibility and respect for the employee. This means not giving false praise and avoiding rumors about upcoming promotions and raises.
Employee empowerment
Employee empowerment is a key aspect of human capital management, especially in competitive workplaces where open vacancies are on the rise and workforces are expected to do more with less. The process of employee empowerment can take many different forms and should be adapted to the workforce’s needs. In some cases, employee empowerment will mean allowing employees to make important decisions on their own, such as how to allocate their time and how much time they should spend on personal or professional tasks.
Learn more about human capital management as you check out Health Compass Consulting, an employee benefits consulting firm that improves the financial and physical health of successful businesses. Visit their website at healthcompassconsulting.com to view their services and schedule a free consultation.
