Capital refers to previously manufactured durable goods that contribute to the production of goods and services. Simply put, capital is any manufactured good or service that enables an individual or organisation to produce high-quality output. Capital acts as a catalyst to boost organisational productivity. In this article, we’ll discuss Human Capital Management. What is it? and why is it important?
What is Human Capital?
Employees are an organisation’s lifeline. A company cannot exist if there are no employees. Individuals contribute to the success and productivity of the organisation in their own unique ways. Employees spend the majority of their days in offices, working hard to achieve the organisation’s goals and objectives. Employees should be motivated on a regular basis so that they develop a sense of attachment to their organisation and deliver their best work.
Every employee gains some set of skills during his or her tenure as a result of his or her experience, exposure, training, and so on, which increases his or her productivity and ultimately benefits the organisation. Human capital refers to the knowledge and expertise that employees develop over time in order to increase the productivity of organisations. During his or her time with the organisation, every employee makes every effort to improve his or her skills. Human capital is defined as the collective stock of employees’ skills, attributes, knowledge, and expertise, which also plays an important role in increasing the organisation’s productivity.
Every company spends money and resources to train new employees. Employees, in turn, work hard, upgrade their existing knowledge, and contribute in their own unique way to increasing their organisation’s productivity. Human capital is critical in increasing an organisation’s productivity and output.
What is Human Capital Management?
Human capital management is the management of an organisation’s employees in order for them to significantly contribute to the overall productivity of the organisation. In layman’s terms, managing an organisation’s workforce refers to human capital management. Human capital management is defined as the method of acquiring, training, managing, and retaining employees so that they can contribute effectively to the organisation’s processes. It is the process of improving an employee’s existing skills and getting the most out of him or her.
Human capital management is more concerned with how companies treat their employees?
Do not treat your employees like slaves. Senior management must ensure the timely growth and development of all individuals involved in order for them to contribute effectively when needed. Every organisation’s primary goal should be to train its employees so that they can later become efficient resources. Organisations treat their employees as essential resources that contribute to the organisation’s productivity through human capital management.
Individual development and management in accordance with their key responsibility areas not only make them an essential resource in the future, but also ensure their complete contribution to the organisation.
Importance of Human Capital Management
Employees. Individuals who devote the majority of their day to contributing to an organisation’s success are its most valuable resource. Employees have the power to make or break a company, making them a company’s lifeline. Human capital management is critical for attracting, managing, training, and retaining talented and high-performing employees.
Human capital management is critical in the recruitment process. It guarantees that human resource professionals hire people who truly deserve to be there. Getting the right people on board is critical. A person who is not suited for a specific role will not be able to contribute much in the long run.
Talent Acquisition
Talent acquisition is one of the most important responsibilities of human resource professionals, but it is frequently overlooked in most organisations. Do not hire someone simply because you need to fill a vacancy or because your superiors have asked you to. Examine a person’s background thoroughly. Investigate why someone wants to join your organisation. Remember that money should not be the only motivator for someone to change jobs or join a new organisation. An individual tasked with acquiring new talents should not overlook an applicant’s previous experience, interests, professional qualifications, and reasons for changing previous jobs. If you really like someone, try to get some references.
Some Small Gestures
Human capital management is crucial in orienting a new employee to the system. Boring as well as meaningless induction programmes cause confusion and eventually cause an employee to lose interest in the organisation. Do not overwhelm someone with unnecessary information on the first day he joins the organisation. Believe me, he will flee. Make him feel at ease. Request that he/she not bring lunch from home. Order lunch from a restaurant and invite all of his team members to join him for lunch. Such small gestures go a long way toward breaking the ice among team members.
About FlexC
In order to connect top Indian talent with global markets, FlexC was founded. FlexC is committed to uniting trusted experts, ardent leaders, founders, and executives in a vibrant environment. Our platform’s durability and the outstanding AI technology that sets us apart are testaments to our commitment to excellence. We work hard to be the best platform for recruiting and managing hybrid workforces with human capital management in addition to offering the best freelance jobs in India.
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