Understanding what human capital is and how it is essential for the company to move towards success. Check it out below.
The human capital is responsible for the success of the company. All ventures are undertaken by individuals, even when equipment and machinery make up an essential part of the business. It is through individuals that management, technological utilization, market position and relationship with society are possible. Employees have consideration of a special type of capital for organization, composing the so-called human capital of a venture.
What does human capital mean and why does it matter so much to companies?
The concept behind human capital appeared between the 18th and 19th centuries, counting on the evaluation of economic theorists such as Arthur Lewis and Adam Smith. This concept of human capital, then, required the need for the enterprises not to be available only to the technical aspects, but human, at the moment of the establishment of proper norms of operation.
In this beginning, human capital was primarily associated with the labor force of an enterprise. However, the relationship was a still incomplete conceptualization, because there was the comparison of individuals to a type of mass of homogeneous character – which had no reflection on reality, because each one has its own behaviors and characteristics.
A while later, in the 1950s, economics professional Theodore Schultz, who composed such a concept. He made the definition of the meaning of human capital as a grouping, capable of encompassing the ability to produce values from the skills, knowledge and the like related to individuals.
Another professional, Paulo Sandroni, is able to associate the human capital from one company to the investment group reserved for educational and vocational training. This means that the way the enterprise prepares these professionals so that they can deliver the desired result.
Since individuals have a responsibility for highlighting the competitiveness of an enterprise, there is a need to understand how to design proper management and, in fact, what is human capital. As a result, departments involving human resources need to adopt more strategic and appropriate behavior in relation to the necessary company criteria.
As for human capital, HR’s function is to ensure the success of the company, something that can be easily achieved through attractiveness, contract and retention of better talent. Thus, there is a need for people management to end up through optimizing processes, through which links between employees and the goals of human capital in organizations are built.
5 tips for retaining talent
Some tips can help the company retain talent, as well as a human capital that optimizes the business. Check out the top 5 relevant ideas for this:
Know the required skills and employee profile
Competency management, which identifies the professional profile that contributes to a greater return to a company, raises its importance. These skills and competencies of the organization need to be defined from strategic planning, to help in the management of human capital throughout the procedure in question.
Empower the team with the help of innovative means
This fact is very important for consistent human capital. Building culture based on learning and collaboration among enterprise servers is essential for human capital. It is important to show how knowledge management has the capacity to drive results. Investing in digital media and innovation to bring knowledge to its employees is always an excellent training idea, seeking human capital and intellectual capital.
Make good and positive performance management
Make use of systems for monitoring employee performance reviews for positive human capital. Organizing the track record for goal setting and getting the right feedback to guide individuals on the route of greatest production is critical. There is a need for work that focuses on information.
Get consulting support
A management that targets human capital is quite a challenge for enterprises, but it can be conquered. A consultancy, in this case, is very useful to keep your company growing and becoming more valued.
How to strengthen human capital in the company?
There are a few ideas that can help your business gain strength in human capital. Check out the main ones:
Know employees’ skills and profile well
Ideally, the company should invest in competency management. These help HR managers and employees adjust all attitudes towards human capital.
For team leadership in relation to human capital, there is the help to delegate activities, according to the affinities and experiences of each employee. This contributes to driving more outstanding and faster results, as well as managing employees who are satisfied, in order to reduce turnover rates to improve human capital.
Bet on digital, innovative and collaborative capacity building
Build a collaborative and learning culture for your business. This is important for human capital and for making managers’ initiatives a true way to drive results.
There is a need to invest in simple and easy means to unleash knowledge to employees so that they can apply immediately.
Currently, employees demand a lot of creativity in solutions, based on visual resources that can allow management that values information immediately and objectively. There are simple and inexpensive options that can be helpful to this process.
Strategies, such as gamification, have been adopted by various enterprises that want revolution in the way of managing human capital.
Have good performance management
Ideally, explore the use of systems that can enable server performance analysis to be tracked.
By organizing past performance histories to meet stated goals, management can bring feedback more accurately to all teams, turning results into metrics that make decision making easier. This enhances human capital.
Knowing how to define human capital and understanding its value to the company, this is the moment to take into consideration the improvements of its management, adopting techniques that value the appreciation of this capital: individuals.