How good is your business at managing human capital? Recognizing that your people are one of your company's most valuable assets is the underlying principle behind human capital management (HCM), which encompasses:
- Recruitment, training, and management of staff
- Leveraging HCM strategy to generate profitable business models and high-functioning cultures
- Creating a set of processes and technological tools to systematically enhance recruiting, management, and employee performance
But how this strategic approach to human resources contributes to a company's growth isn't always clear. Here's a broad characterization of just how essential HCM is to your company's long-range expansion:
No business succeeds without engaged employees. A key objective of HCM is assisting company leadership in setting the tone for engagement throughout the business. By placing a top priority on how employees approach their jobs and find fulfillment in their work, leaders can help build a culture of loyalty and retention that serves as the underpinning for future growth. HCM helps define what engagement looks like within the company; coming up with creative and innovative solutions or leveraging teamwork to achieve specific objectives.
When you establish engagement as a major key performance indicator (KPI) and continuously measure it, you can assess how well you're doing through periodic assessments like surveys and forums. Effective leaders demonstrate the importance of engagement by promoting it among teams and individual employees. They understand that open lines of communication make it easier for your team to keep you informed when things aren't going well.
And when they're not going well, it's a potential obstacle to growth.
Use technology to enhance collaboration. HCM is focused on developing and promoting collaboration tools as a means of responding to an ever-changing workforce. Employees may work remotely, companies may have offices or departments in different locations or time zones, sales teams may be constantly out of the office in search of viable leads – whatever the situation, there must be a way for employees to collaborate across great distances, or growth can be impossible.
Fortunately, a wide range of collaboration platforms exist that keep your teams connected. An effective employee management strategy can outline the right mix of tools and project management resources (from video chat to file sharing, for example), keeping employees in touch with each other and their managers at all times.
Adopt strategies and technologies to maintain a strong influx of new hires. While employee retention is always a top HCM objective, so is adopting strategies and technologies to ensure the right type of job candidates come through your doors.
Less competitive businesses have been slow to recognize just how 'mobile-centric' most of the newest wave of talented job applicants are. These individuals search job posts and review employer websites strictly through their mobile devices, so in order to meet their needs, a company's entire application process must be optimized for mobile use.
Refining your career site functions and job applications so they're mobile-compatible can help eliminate frustrations with the hiring process and speed up your ability to hire great candidates by immediately getting interested workers into your company's pipeline.
A business committed to steady growth can invest in marketing and branding tools, flashy product updates, and elaborate customer-acquisition strategies. But it’s by wisely managing human capital that a company can experience real growth.