It’s time for new management thinking when it comes to making decisions about people. Human Capital Management (HCM) solutions include recruitment strategy, hiring methods, training and coaching programs, incentive plans, and succession planning, promotion criteria, will determine your business outcomes. Throughout my 20 years working in human resource consulting, I have seen much more guesswork involved in HR decisions, than than data-driven, strategic, knowledge-based decisions! Why is that?
Perhaps the most obvious reason that many companies struggle with underdeveloped human capital strategies is that they are not a priority for the current Senior Managers. Companies spend a large share of their revenues (e.g. usually about 60%) on salaries and benefits. Despite this high spend, many managers can’t say what kind of return on investment they are getting from their human capital management strategies! We challenge you to name one other department in your company that can justify such a large spend without a very clear understanding of the potential utility of the spend and the ROI outcomes.
Your employees are your most valuable assets. Unlike technology assets, or market strategies, human assets cannot be copied by your competition. Therefore, it is sound business reasoning to regard your employees as a critical component of your competitive advantage, and as assets that should be invested in.
The Human Capital Solutions are Here
The answer is simple: a lack of awareness or knowledge of the assessment tools and monitoring processes for Human Capital Management
As companies large and small scramble to embrace the advantages of the overwhelming amount of data available to them, it’s mind boggling to think that Human Capital Management would be an exception to use this available data. While we have had many of these assessment tools for many years, including pre-employment screening and performance-based management systems, advances in technology now allow us to monitor and gather our human capital data, analyze that data, and draw accurate conclusions that will positively impact the company’s bottom line.
Today’s technology makes collecting this data and applying it to business decisions much more efficient than ever before.
Specializing in Human Capital Solutions and Systems
Small, medium, and large companies have all benefited from the Human Capital Management tools and systems we help develop with our clients. Contact us today to learn what tools will help you build a profitable human capital strategy!
Throughout my career, I have time and time again seen the need for companies and hiring managers to ask themselves these questions about their human capital management strategy. Take a moment to really consider your response to each of these questions, and challenge yourself to find any holes in your current reasoning.
Human Capital Management (HCM) captures new value from workforce metrics. Insights gained can be translated into lower costs and higher returns for owners and shareholders. Investments in people will allow senior managers to obtain a competitive advantage that other companies can’t copy.