To be a successful manager, one needs to be investing in human capital development. The term ‘human capital’ has drastically achieved a special status. As a manager, you need to ask oneself what social capital development is? And more so why is it a critical factor in company success. When looking at it in a different angle, it has some differential for a more prominent financial company. But, does it have an understanding for small companies that have small budgets. Different steps ensure a manager to achieve and invest in human capital development.
#Understanding clearly what human capital is all about
First of all, the manager needs to understand what is human capital development. In simple terms, social capital development is a process of economic value quantification of targeted employees’ set of skills.
Like all other forms of capital, human capital is vital in long term assets. Employees’ profile skills collectively meet your company’s needs, but the most important thing is that it adds the company’s intrinsic positive value. Investing in human capital in employees is a smart financial move investment that will add value to the company. Social capital investment also increases employee engagement level and satisfaction. When an employee feels that the company’s management appreciates their effort and value, the high chances are that they will stay with you.
#Help employees keep up with the necessary skills
The whole ideal thing about human capital investment is focusing on employee sets of skills. A manager needs to make sure an employee acquires new sets of abilities and skills. The rational capital investment business approach ensures great practical sense to small companies. The investment might be through higher productivity and capabilities.
A manager needs to ensure that the company’s human investment keeps up with its needs and landscape niche. Technology changes, and so the human capital of your employees needs to keep up with the trend.
#Make life easier for static skill workers
Well, a manager needs to understand that not all skills require human capital investment. Not all workers will benefit from it. Some positions require a static ability. For instance, they operate a machine that does not change or any repetition like the point of sale operations.
For these kinds of workers in a company, having human capital investment could make their life easier. Look for some opportunities or creative ways the company can help those termed as ‘static skill’ workers reach other missions or goals.
#Invest in best tools, supplies, and equipment
Human capital investment does not entail investing in the employees directly. It also implies a manager providing a conducive serene for the workers to ensure more productivity. For instance, making sure your employees are equipped with top quality furniture, tools, and equipment hence to produce a friendlier environment.
Employee investment is a smart move that ensures to withhold valuable, efficient, and skilled employees. Human capital brings back dividends to the company itself, in terms of increased productivity, fatter profits, and high quality of service. As a manager, you need to put out a clear picture with the HR staff. Explain objectively on the benefits of human capital investment. With a clear budget and charge, HR can have an analysis of the needs and opportunities.