Human Capital is a measure of the skills, knowledge, abilities and social and personality attributes that influence employee productive capacity and earning potential to produce economic value.
Human Capital Management (HCM)
Successful companies regard their employees as their most valuable asset and greatest investment. However, as the company grows, the management of people within an organization is much more complex. Really, managing human capital doesn’t have to be such a big challenge.
A human capital management system or human resource information system (HRIS) is a collective business practice that combines a number of systems and processes within an organization to ensure the ease of managing human resources, business processes, and data.
Traditionally, human capital management consists of the grouping of the different strategies necessary to facilitate staff development and understand their value.
The human capital management system enables the free flow of information between superiors and subordinates and provides a platform to attract, develop and manage the most important business resources.
Indeed, if you want to have motivated and productive employees, you need to actively invest in human capital development.
But, after all, why is it so important to pay attention to the human component? Is this also your question? Don’t worry, here, you will find the benefits of implementing excellent management of human capital in your business.
Top 5 Benefits of Human Capital Management System
Here are the top 5 reasons why you need a human capital management system in your organization.
1. Improve Communication in the Workplace
Indeed, the implementation of excellent human capital management enables a greater flow of data and information throughout the organization.
The organization must be willing to invest in instances that make it possible to detect failures in the communicational process such as noise, verify which professionals have the most difficulty communicating, and implement strategies to help them develop this weak point. As a consequence, much more efficient communication can be developed.
2. Increase Employee Satisfaction
To foster a culture of happy and productive employees, you’ll need to combine HCM technology with your HR processes to increase employee engagement and job satisfaction.
By carrying out actions that promote the development of human capital, it is possible to increase the degree of satisfaction of people, mainly because they stimulate the feeling of belonging to a group and of being important to achieving its objectives.
3. Increase Productivity at Work
Managing productivity and human talent has become a major aspect of companies. Human Capital Management is growing in popularity as one of the most powerful tools companies can leverage to increase their productivity.
When professionals are trained to carry out their activities, they tend to do them with more assertiveness and agility, a situation that leads to improved time management, thus promoting a drastic optimization of productivity.
4. Improve Your Corporate Image
This advantage goes hand in hand with the previous one since by increasing the productivity of employees and fostering their motivation, teams dedicated to customer service tend to interact more cordially and carry out their activities more efficiently.
If you want to modernize your business and make it thriving, take a look at some key motions in the HR technology sector and apply HCM technology to your business.
A strong corporate image and employer brand can motivate employees, which gives a noticeable boost to the overall productivity of your business.
Human capital management seeks to align itself with business objectives, taking into account the demands of people in the corporate universe.
Remember, employees dedicated to customer service represent the company to the customer, so it is essential to ensure that they have an excellent experience.
5. Increase Return on investment (ROI)
Return on investment (ROI) is a financial ratio used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments.
It is a fact that, by hiring staff, you are investing in the human capital of the company, however, it is not enough to pay them a salary and benefits.
To dedicate themselves to work, the employee must feel important and understand that their efforts are being recognized by managers. Some of the most effective ways to show that the company is truly committed to its teams are:
Conduct courses and training.
Offer opportunities for professional growth.
Provide bonuses and complementary financial incentives.
In this way, people manage to feel valued, thus raising their productivity and motivation to carry out activities. As a result, the company manages to increase its income and optimize the return on investment.
As you can see, it is very important to pay attention to this area of the company, since it contributes to improving the organizational climate, optimizing processes, and increasing profitability.