Human capital is the most important resource for the company and in human resources departments. It refers to the productivity of workers based on their work experience and knowledge. As time goes by, it is much more convincing that only the organization that motivates, trains, and develops them, has the capacity and strength to achieve success. Allen Woo, an expert in managing people in the workplace, explains why human capital is considered the most valuable resource any company can have.
To this day, no company functions or has functioned without at least one person, which is the main reason why people are the heart and core of its operation. Human capital is the set of knowledge, skills, and attitudes of the workers that the company has at its disposal to achieve its objectives. It is the intellectual capital that the entrepreneur, through good talent management, can transform into operational performance.
Any company, whatever its activity, needs economic resources, technological resources, and, of course, human resources. It is essential to balance and wisely manage all three in order to operate successfully.
Currently, in the face of such fierce competition for products, services, and prices, together with the great advance in technology, it is difficult to find differentiation; it is in the individuals that make up the organization where the competitive advantage lies because no two people are alike.
Woo explains, “To effectively manage our human capital it is essential, first of all, to have a good selection system. A human resources selection that analyzes the candidates that apply for the position to be filled. Find out what their professional competencies are, what their values are, and to what extent they identify with those of our company. What motivations they have, their degree of involvement with the job, our philosophy and way of working.”
Capacity and creativity need constant stimulus. Training is a motivation to avoid falling into productive routines. Management must always keep in mind that training its human team is a bet to obtain greater competence and increase performance and productivity.
Finally, it is also necessary to design and draw up talent management plans. It is the tool that will make you more competitive and allow you to face new situations. Through performance evaluations, develop leadership, design training itineraries, establish career plans to achieve new professional competencies, and increase the feeling of belonging.
It is necessary for the management of any company to ensure that it has a team with the best skills, knowledge, and attitudes. The purpose of this is to be able to have a happy, motivated, and therefore high, performing team that, at the end of the day, differentiates you from your competition and makes you the best for your customers.
“Investing in our human capital is one of the most valuable assets for the company, as it is totally linked to obtaining new technological and economic resources,” says Woo. “If our focus has been elsewhere and the organizational system suffers, there is always time to change course and look for solutions to optimize our human capital.
The real importance of human capital lies in knowing the key role that workers play in performing those tasks that are essential to a company’s success. The greater the capacity the human team has, the more efficient the tasks carried out within the company will be and the more the proposed objectives can be met.
Human resources are essential for the recruitment of the best team possible. They also need to be responsible for training and adapting employees. Employees will perform better if they have a better understanding of the company’s values, and its objectives. Contrary to popular belief, the work of this department should not be restricted to administrative matters. It should promote a positive work environment that encourages employees to feel valued and motivated.