The concept of human capital and, by extension, its measurement is becoming increasingly popular.
According to Maslow’s theory and his pyramid of needs, we can aspire to achieve our full achievement if and only if certain needs are met as a matter of priority:
- The need for esteem (trust and self-respect, recognition and appreciation of others)
- The need to belong (team and common goal)
- The need for security
These needs will necessarily apply to your human management strategy! Here are some useful tips for successful human capital management.
First, some definitions…
What is human capital?
Human capital is the set of accumulated talents, skills, competencies and experience that partly determine the ability to work or produce for oneself or for others and therefore affect economic activity.
The concept of capital, and therefore of human capital, therefore opens the door to the concept of measuring human capital, return on investment and capital development.
Whether we are for or against the concept of capitalizing the employee, let’s look at it in a positive way and say to ourselves that it is high time we put the employee at the centre of our concerns when we talk about business performance!
Some tips for better human capital management
1. The right person in the right place!
There is no right or wrong employee, but there is the right employee for the right position in the right organization.
Have you found a rare pearl? Congratulations!
However, if this pearl is not “sitting in the right chair”, the concept of a rare pearl is futile.
For an employee to perform well in a position, he or she must have the skills and motivation to perform his or her duties.
The use of a tool that assesses innate motivations and skills is a good start to ensure that the right candidate is placed in the right position.
Does the measurement matter to you? Then use a reference model, which will represent an individual’s index of success in relation to the position in question in YOUR organization.
2. People leave their bosses, not their employer
Not only have you found a rare pearl, but you have also found the perfect position for it? Congratulations, once again! Unfortunately, there is another important element to consider: your boss!
Employees do not leave their employer simply because they are offered better conditions elsewhere: they mainly leave their manager.
According to Roger Herman, the “Father of Employee Retention”, 75% of people who have voluntarily left a job do not leave their job; they leave their boss.
3. Coaching, Coaching, Coaching, Coaching
Learning is an endless process and there is always room for improvement!
Train managers to become better coaches so that they can help their employees discover and develop their full potential, be able to give clear direction, encourage good behaviour, share knowledge, give constructive feedback, focus on solutions not problems, develop trust, etc.
4. What about the team in human capital management?
Let me summarize: the right person, in the right position, with the right manager.
But one last aspect is still missing: the team!
The teamwork is equally important, since it is through teamwork that we maximize performance. Human capital management means making sure that you use all means to bring out the best in your employees and also consider the fact that an individual did so with his or her team.
In fact, there is no need to imply that all individuals must be the same! On the contrary: we must embrace complementary, not similarity.
The management of a team is largely the responsibility of its manager. That being said, if human resources want to maximize the human capital of their company and ensure that they recruit or develop the right people, for the right positions, they have every interest in helping managers to better manage their teams.
How? How? Through training, coaching and skills development.
5. I trust you, you trust me
How can we get the most out of our employees and ensure better human capital management without mutual trust and transparency? It is simply impossible! Whoever sows trust and transparency will reap it in return. Don’t you want to trust your employees? So don’t expect them to trust you!
Do you want the best of your employees? Well, know that they will only display their true colours once they are secure in the knowledge that they can be accepted as they really are.
We all spend a lot of energy showing ourselves in a better light, trying to hide what we think are our faults. All this energy is spent in vain. It is not only counterproductive, but also prevents the individual from giving the best of himself.
You want the best from your employees: allow them, through trust and security, to be true and achieve their full potential!
6. What am I doing all this for?
“I’m willing to give the best of myself, but the notion is completely meaningless if I don’t know what’s expected of me.”
Fuzzy objectives, fuzzy results! A manager must have clear expectations of his employees so that they know what is expected of them.
The company as a whole must also have a purpose and a clear vision. We all want to give the best of ourselves for something bigger than ourselves, to feel invested in the mission of the company we work for.
So, involve employees in this something bigger, encourage them to participate in important decisions, celebrate victories with them. You will thus reap the benefits of better human capital management
To better manage human capital and get the best out of our employees, it is important to ensure that we have the right person in the right position, ensure compatibility between the employee, his manager and his team (need to belong), train managers to become better coaches, develop trust and transparency to offer employees the security of being real (need for esteem and security) and communicate an overall goal to motivate people to surpass themselves towards achieving goals (need for esteem).