4 Ways to Build Better Human Capital ManagementJuly 26, 2016 - By: Matt Thomas
Not long ago, “Human Resources” was associated with the person on staff who processed employee paperwork, made sure everyone received their paycheck, and handled the occasional conflict.
Today, the role of HR has become much more dynamic and involved for many businesses. An increasing number of companies refer to HR activities as Human Capital Management (HCM) to more accurately reflect the strategic, leadership-oriented nature of the department.
Think of HCM as people resource management, specifically in the areas of workforce acquisition, management and optimization. In addition to the typical administrative tasks, HCM includes workforce planning and strategy, recruitment and onboarding, employee training and reporting.
Successful HCM is when companies treat their employees like a true investment. Here are some ways you can build better human capital management practices for the benefit of your workforce:
1. Engage beyond recruiting and onboarding.
Sometimes talent management can get so focused on recruiting new hires that they ignore the current employees, which is a big mistake. It’s crucial for businesses to give proper attention to their entire staff. HR professionals must learn to look well beyond the recruiting and onboarding process, and craft a vision for the whole career span of each employee with the company. Consider having regular conversations with individual employees in regard to progressing through a long-term career path in your organization.
2. Adapt management styles to individual employees.
In order for a company to be successful and retain talent, it’s important for leaders to factor in individual employees’ personalities and preferences, and take a more personalized approach to management and communication style.
A great place to start is by encouraging your employees to complete a personality assessment such as the Myers-Briggs Type Indicator or the DiSC® profile. By learning more about how individual employees function, managers are better able to fully engage employees, and enhance innovation and collaboration.
3. Place value in technology
Almost every aspect of HCM can be enhanced and strengthened through technology. The use of technology in the HR profession has brought about significant advances in managing employee data and made it easier to gain greater insight than ever before, all in a timely fashion. HR professionals should take a deep dive into implementing the right tech tools for their business that will help them automate their processes.
Taking advantage of all that today’s technology can offer means that your HR team can afford to spend time getting to know the people behind the organization. By becoming more people-centered, you may be surprised to find your future leaders are already in your organization. HR professionals can help management invest in them, provide tailored training opportunities, and fill gaps within the workforce.
4. Take a flexible approach to communication.
HR professionals are commonly the ones who deal with changes and transitions. While change can be scary for everyone, HR professionals can promote open communication within the organization to keep employees in the know and feeling valued. It’s important to do this not only during transitional periods, but with day-to-day communication, as well.
During situations like budget cuts or layoffs, which is typically bad news to deliver, HR professionals should communicate these types of things in tandem with support for affected employees, like offering outplacement services. By acknowledging that the work environment is subject to change and offering ways to adjust, you remind employees that the company has everyone’s best interest in mind.
Human capital management has become a critical factor in the formula for organizational success. While it can be challenging to stay up to date with the continuously evolving needs of your company, it’s important to adapt in order to keep your business moving forward.
At WorkSmart Systems, we provide comprehensive HR solutions for organizations looking to boost their human capital management capabilities, seeking to streamline vendors to save time and money, and interested in focusing more on growth opportunities. By partnering with a Professional Employer Organization, businesses are able to spend more time taking care of their most important asset – people. If this is something your company could benefit from, contact us for a consultation.