Investing in human capital is the real story of a successful business. Human capital is the force that will provide the strategy on actually developing the wealth of the business and it is what keeps the business going on a day-to-day basis. Human capital is an intangible asset as it includes all the competencies of the people within an organisation. These competencies differ between skills, experience, education and potential of each employee. Finding the right candidates with the right mix can be difficult but getting the right people to stay within a company once you’ve found them can be even tougher. If done diligently, this will ultimately be the reason for the company’s growth and wealth. After all, a company invests in its technology, its real estate, so why not in its people?
How does one make this investment a competitive advantage?
Like most other success stories, one would need to be one step ahead of the competition. Maybe not in numbers, but in a diligent investment process with the right people. These are the secret weapons of each company. Not only do you improve on your actual staff, it will also attract those who aspire to reaching the same goals.
The right, ambitious career-minded people will gravitate to a company that invests in its human capital. And this is exactly the type of people you would want to attract. Today’s workforce seeks jobs that offer career progression, and a company that invests in its people does just that. To reap the most benefits from employees, your business needs to actively invest in them.
This may be done in various ways, by offering training, clear career progression and offering engagement processes by knowing your employees’ strengths and helping them develop those. This will not only create a better employee, but a happier one. Your business has to spend money on developing its workers to maximise the return on your human capital investment. Support your employees’ careers by offering them study opportunities and supporting their growth and learning. This will ultimately reflect in their performance which, in turn, will ultimately improve your bottom line.
The right, ambitious career-minded people will gravitate to a company that invests in its human capital
How does this happen?
It is quite simple. Just like any other investment, you have to make sure that it is the correct one, and this is imperative from the word go, the recruitment stage. Many skills are easily found, but it is the right person you need together with those skills. This takes more than just putting out an advert and waiting for the people to apply. Your investment plan starts here.
The search and selection process has to be a vigorous one. You have to find the qualities and skills in people who share your ethos as a company as a whole. Your recruitment strategy has to be such that it will add value to the business, as well as to your already established workforce. This will then ensure that your human capital will be worth investing in.
Once you have the right people on board, it is these people who are going to steer your business to growth. It makes perfect sense to nurture these, who in turn will nurture your business. The first sign of successful investment is retention. This is a clear indication that the employees feel validated and appreciated. Well engaged employees will be well engaged with your clients. Remember, they are the face of your brand and this is reflected strongly in the way they interact with your clients. Ultimately, this is the competitive advantage you will obtain from your investment.
Nikki Farrugia is director of client services at Castille, a leading specialist recruitment brand in finance and tech.