Human Capital Management Optimizes Overall Productivity
It is said that effective human capital management can add value to organizations.
Some people refers to human capital as being the same as HR.
Human capital refers to the talents, knowledge, skills and competencies that reside with the workforce. Human resources refers to people, HR processes and practices. HR specifically points to the people in HR.
Thus, employees need to have the required talents, knowledge and skills needed by organizations.
The process of adding value starts from the time when you formulate your recruitment policy.
Ask relevant questions, including "Should we fill this vacancy?", "Is it necessary to create new positions?", "How long must it take to recruit a new employee?", and "What type of skills and competency are we looking for?"
Is human capital management the same as human resource management?
Click HERE to check out whether or not it is different from personnel management.
Employee Recruitment Policy Motivation, Engagement and Retention
A strategic compensation and incentives system can motivate and engage your employees in the performance of their tasks.
Challenging work with effective personal development plan and providing your people with the necessary set of skills to perform the job well, can make your people more committed.
Pay particular attention to employee retention. Be aware of the problem of retaining good employees. Try to recognize their talents by deploying them to appropriate jobs.
Usually, quality employees will leave when the working conditions are not conducive. However, some will leave when better job opportunities are available.
Different people are motivated by different things. Employees at different organizational level place different emphasis on
the same incentive.
Cultural background also has a bearing on the level and types of motivation that are effective.
Integrated Human Capital Management
It was written that "many organizations remain stuck in the old system without automation."
It is true that you can integrate human capital management without employing the latest technology.
However, in the increasingly complex environment under which organizations are operating, it is advisable to consider seriously using suitable automation system that is available.
We need to be realistic, though. Technology is not everyone's cup of tea. Help your people to make the necessary adjustments. Some will resist change, with apprehension of what will happen to their jobs in the process.
What is involved in integrating Human Capital Management (HCM)?
The use of HCM technology puts "on-line" the management of human capital. The main aim behind using an HCM software system is to increase the productivity of your workforce. HR is aligned to business objectives, through the use of technology.
All human capital programs and processes are integrated under the HCM technology. The business processes are interfaced with the HR processes under the system.
The task of integrating HCM is very challenging. A lot of thought and planning is required.
You need technological resources. You need talented and skilled people.
Reasons for implementing Human Capital Management Integration
You keep one set of data in one place, accessible by everyone in the organization. Secondary data is not allowed. These other data have the tendency to be inaccurate and not-up-to date, affecting the quality of your human resource services.
The HCM software automatically updates the common data. This releases time for your people which they can use productively improving their performance.
This also promotes a "paperless" work culture. This is one of the intended objectives of implementing HRIS.
Intended objectives of Human Capital Management integration:
- The central set of data is used to generate reports and analysis to measure business results. For example, whether the target is achieved and to what extent.
- Streamlining of data handling process. Everyone understands the other person's contribution better.
- You can manage compliance more effectively. Everyone will know when a rule is breached. This promotes a "continuous improvement" mind-set.
- Personalized user's desktop integrates their roles into the process of HR service delivery.
- The common data provides HR people the avenue in becoming better business partner.
- The system can assist to track effectiveness of key HR performance indicators, thereby helping your organization to take timely corrective actions.
The task of Human Resource management integration using technology, is an extensive and a time-consuming undertaking. A good system is expensive. A lot of small and medium organizations may choose not to jump in the band wagon.
Unless you have the necessary in-house technology resources and process experts, it is better for a service provider to handle this complex matter.
Qualities of the potential Service Provider that Must Guide Your Choice
- The service provider must have human resource management as a core business undertaking.
- It has a good track record in business process, and management of human resource finance and risk management.
- It has a good know-how in HR service delivery process and technology.
A factor to consider is whether the service provider is good at empowering people in your organization in the continual use of the technology.
Important Matters To Keep in Mind in Effective Implementation
Regular Review of Organizational Position to Determine Implementation Time-Line
- Senior management endorsement and continuous support
- Involvement of your HR people right from the beginning. Knowledge transfer is necessary and important
- Communicating to every employee the 'what' and 'why' in using technology in human capital management
- Undivided support by your HR Manager and HR professionals
- "Ownership" of the new system by everyone in your organization especially line managers
- Provision of intensive training for every executives and everyone else in the effective and proper use of the new system
- Continuous use of the new systems with no toleration for secondary systems that purport to achieve the same objectives
- Regular review with the view to improve the system and better use of it
- User's feedback, and prompt action on it
The important contribution of effective human capital management to organizational success is a matter that should convince every organization to consider using technology in managing its human capital.
It has been reported that with all the "rage" on human capital management, there is still a long way to go in the implementation of strategies in people management.
Is this a need in your organization now?
You may defer implementation to a more appropriate time when you are ready after considering all the surrounding circumstances.
If this is so, review your organizational position from time to time. There will come a time when you will clearly see that the RIGHT time has come to look into human capital management and ways in improving the quality of your people and HR processes.
However, keep in mind that "human capital" is a term that is not very popular. Some believe it connotes manipulation. Other name put forward by other people is human asset. But this, too, indicates some form of manipulative act by those in authority.
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