When 60% of your company’s budget is comprised of human capital, wages, taxes and benefits, HR resource management quickly becomes a priority. Human resource management is the most effective way to ensure productivity, goal achievement and overall profitability. Quality assurance, customer service and productivity initiatives are driven by your employees, who in turn are guided by an effective human resources plan and budget.
Why don’t companies adequately invest in human capital and infrastructure?
Smaller companies often fall prey to believing they don’t have sufficient capital resources to maintain an official HR department. In halcyon days preceding ’08, many managers disregarded HR development, because they were assuaged by fiscal growth. The truth is that boom or bust, investing in employee well being and development is paramount to stable trajectories. Your employees are also more likely to see you as a born out principal deserving a respected seat at the boardroom table.
What does adequate investment in human capital look like?
While it depends on the company’s particular area of endeavor, it centers on placing humans first; which in turn means eliciting best possible performance while making allowances for the very things that make us perform. This is the art behind adept HR management. And this likely takes the form of employee recognition programs, commensurate compensation, enhanced recruiting and service initiatives.
Influences that translate to long-term company success start with strategic hiring, meaningful orientation, impactful training and management, and transition into regular reviews, merit-based compensation and recognition programs.
Another necessary alignment involves matching client and market demand with people that effectively deliver solutions. Determine how your human resource policies can be revised to support the goals of the company. Examples of exemplary human resource initiatives abound. If you’re unsure about where to begin, consider help from a firm that’s made superior HR their priority. Data shows us that including management in the development of initiatives ensures successful implementation and subsequent employee buy in.
Willingness to revisit your human resource and human capital policies on a regular basis is proving to be among the most effective strategies of all. In our e-commerce driven reality, goals and realities rapidly change, so infrastructure supporting those goals need to change in turn.
Inevitably, employees’ work habits, work environment and attitudes will either contribute or detract from the attainment of company goals. Thus, a company vision blind to the needs, wants and well-being of the team that supports it is doomed to failure. With so much operating budget allocated to human capital, why not make that capital work for everyone? Even better, create a win-win environment that supports the goals and objectives of both the company and its human capital.
Do you need help getting started with HR management, or advice for improving your existing human resource management strategy? Contact Solutions At Work today for flexible and affordable HR guidance and support.