Human
Capital is a measure of the skills, knowledge, abilities and social and
personality attributes that influence employee productive capacity and earning
potential to produce economic value.
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| Benefits of Managing a Company's Human Capital |
Human Capital Management
(HCM)
Successful
companies regard their employees as their most valuable asset and greatest
investment. However, as the company grows, the management of people within an
organization is much more complex. Really, managing human capital doesn't have
to be such a big challenge.
A human
capital management system or human resource information system (HRIS) is a
collective business practice that combines a number of systems and processes
within an organization to ensure the ease of managing human resources, business
processes, and data.
Traditionally,
human capital management consists of the grouping of the different strategies
necessary to facilitate staff development and understand their value.
The human
capital management system enables the free flow of information between
superiors and subordinates and provides a platform to attract, develop and
manage the most important business resources.
Indeed, if you
want to have motivated and productive employees, you need to actively invest in
human capital development.
But, after
all, why is it so important to pay attention to the human component? Is this
also your question? Don't worry, here, you will find the benefits of
implementing excellent management of human capital in your business.
Top 5 Benefits of Human
Capital Management System
Here are the
top 5 reasons why you need a human capital management system in your
organization.
1. Improve Communication in
the Workplace
Indeed, the implementation
of excellent human capital management enables a greater flow of data and
information throughout the organization.
The organization must be
willing to invest in instances that make it possible to detect failures in the communicational
process such as noise, verify which professionals have the most difficulty
communicating, and implement strategies to help them develop this weak point.
As a consequence, much more efficient communication can be developed.
2. Increase Employee
Satisfaction
To foster a culture of
happy and productive employees, you'll need to combine HCM technology with your
HR processes to increase employee engagement and job satisfaction.
By carrying out actions
that promote the development of human capital, it is possible to increase the
degree of satisfaction of people, mainly because they stimulate the feeling of
belonging to a group and of being important to achieving its objectives.
3. Increase Productivity at
Work
Managing productivity and
human talent has become a major aspect of companies. Human Capital Management
is growing in popularity as one of the most powerful tools companies can
leverage to increase their productivity.
When professionals are
trained to carry out their activities, they tend to do them with more
assertiveness and agility, a situation that leads to improved time management,
thus promoting a drastic optimization of productivity.
4. Improve Your Corporate
Image
This advantage goes hand
in hand with the previous one since by increasing the productivity of employees
and fostering their motivation, teams dedicated to customer service tend to
interact more cordially and carry out their activities more efficiently.
If you want to modernize
your business and make it thriving, take a look at some key motions in the HR
technology sector and apply HCM technology to your business.
A strong corporate image
and employer brand can motivate employees, which gives a noticeable boost to
the overall productivity of your business.
Human capital management
seeks to align itself with business objectives, taking into account the demands
of people in the corporate universe.
Remember, employees
dedicated to customer service represent the company to the customer, so it is
essential to ensure that they have an excellent experience.
5. Increase Return on
investment (ROI)
Return on investment (ROI)
is a financial ratio used to evaluate the efficiency of an investment or
compare the efficiency of a number of different investments.
It is a fact that, by
hiring staff, you are investing in the human capital of the company, however,
it is not enough to pay them a salary and benefits.
To dedicate themselves to
work, the employee must feel important and understand that their efforts are being
recognized by managers. Some of the most effective ways to show that the
company is truly committed to its teams are:
Conduct courses and
training.
Offer opportunities for
professional growth.
Provide bonuses and
complementary financial incentives.
In this way, people manage
to feel valued, thus raising their productivity and motivation to carry out
activities. As a result, the company manages to increase its income and
optimize the return on investment.
As you can see, it is very
important to pay attention to this area of the company, since it contributes
to improving the organizational climate, optimizing processes, and increasing
profitability.
Conclusion
Human Capital Management
has an essential role in any organization that seeks to have a good
organizational climate, increase productivity and keep its talents happy to
guarantee their good performance.
If you have found this article interesting and you want to expand your knowledge, surely our post on Human Resources will be of great benefit.