Why invest in human capital?
Every employee should matter to an organization. This is because he/she brings requisite knowledge, specific skills, and unique abilities into play at the workplace. They aid in completing various tasks for achieving the concerned organization\'s objectives. In other words, they enhance the economic value of this organization. Yet, few employers grant importance to the career or personal development of their employees. They have not understood the benefits of investing in the vast human capital available to them.
Communication is the Key
It is imperative that the workforce feels at one with the establishment. There should be that \'feeling of belonging. This can happen only when the quality and quantity of information moving up and down the hierarchy remains at healthy levels. Everybody should know about things that matter for attaining organizational goals. Towards this end, it would be good to have mentorship programs in place. They should serve to keep the channels of communication between subordinates and superiors open and simple. They will always aid the company in improving the communication skills of employees.
When organizational staff is satisfied and happy, it goes all out to keep clients/customers happy. Every interaction between an employee and a client remains positive. Thus, the establishment improves productivity and performance.
Engaged and Educated Employees Are Happy
It would be good to offer challenging tasks and opportunities for employees. When the workforce finds itself majorly engaged, it becomes more productive. As employees find doorways to career advancement opening up before them, they begin to change in behavior. Over time, they develop deep loyalty towards their organization. The wonderfully positive culture at the workplace will induce them to come to work willingly, every single day!
Then again, in this age of globalization, professionals have to keep themselves abreast of technological advancements, new knowledge, and current happenings. Therefore, the organization should launch educational programs and training courses as and when needed. Even well-developed social programs are imperative, for they cater to improving the physical and mental health of employees.
Enhancement in Retention Rates and ROI
Will any employee feel like seeking another job opportunity when his/her current place of work is perfectly satisfactory? Of course, he/she will not! The concerned organization allows for career growth, personal growth, and the development of leadership qualities. Thus, investment in human capital suffices to increase the rates of retention. As employees stay on for a long time and gain newer experiences, they add tremendous value to the concerned company.
True, the company has to spend on rewards and bonuses, promotions and increased wages, etc. However, everything will be well worth it in the end. These actions will prove to be a splendid return on investment (ROI) in the long term. Therefore, it would be good for employers not to be tight-fisted!
Finally, the recruitment of the \'right\' employees becomes more comfortable to handle. Thanks to the close-up study of human behavior, interests, etc., employers will comprehend what kind of human capital will prove most beneficial for their respective organizations. Therefore, they will invest wisely and well!