(Register for the November 8th webinar by PEOcompare/TriNet on Human Capital Management)
Human capital management isn’t just a buzzword. It’s the way your business separates itself from its peers. It’s the way you turn raw interns and graduates who don’t yet know about the real world into the seasoned professionals. When you manage human capital effectively, your company becomes better in every possible way. Every component of the process between hiring and retirement involves this broad but subtle range of activities. Everyone on the team is involved every day, whether they plan to be or not.
Simply put, human capital management is how you grow your people. You have the option to either nurture their continued education and experience in a number of ways, or you can let them atrophy. The small choices you make every day are what determine whether your employees grow within your organization or run to another the first chance they get.
How often have you overheard someone say of a company, “They’ve got great people.” The more knowledgeable and professional your people are, the better your entire company looks. Naturally, the reverse is just as true. How often have you heard someone ranting about the incompetence of a company, and how they’ll never use them again? Often this is the single difference between using one business over another.
But what does human capital management really involve? Does it just mean more meetings that will have people trying to hide the fact that they’re playing games on their smart phones? Not a chance! The management of human capital involves many factors. Some of the most effective tactics you can use to make sure your people are growing within your organization are:
1. Allow them to work on independent projects.
Some companies have done wonders just through setting aside one day per week where individual creativity can take the lead. While this isn’t always possible, giving your employees some extra room for creativity can produce ideas and applications you may have never even considered before.
2. Provide incentives to attend professional enrichment activities.
This does involve some initial capital outlay, but the rewards are incredible. When your people become more knowledgeable and grow their networks, this is human capital management at its best.
3. Draw a bold line between cause and effect.
For hungry employees, promotions, bonuses and raises are not optional. Naturally, the hardest workers don’t expect a hand-out, and are willing to go the extra mile. The better you quantify both what you want and the rewards for providing it, the better your high-achievers will accomplish your goals.
How does your organization stack up? Do your employees have any incentive to grow once they’re hired, or is their main motivation just to keep their heads down and try not to be noticed? If you want to take your human capital management to the next level, join PEOcompare.com on November 8th for a free webinar on Building an Effective Human Capital Management Plan. Register Today!
