Human Capital is defined as the aggregation of the innate abilities and the knowledge and skills that individuals acquire and develop throughout their lifetime. The former represents a potential, which is received free of cost by individuals (and organizations as a whole), while the latter is the actualization of this potential mostly through individual efforts involving a cost.Both components enhance the productivity of individuals in the production of goods, services and ideas within market as well as non-market environments.
The elements of human capital: Employer branding The war for talent is every recruiter’s nightmare. And winning wars is about planning and strategy. As organizations spend huge amounts of money running advertisements and conducting interviews, doesn’t that mean we are interviewing similar candidates? And are these the right kind of candidates? The one’s who are doing good work, are well recognised and are comfortably working in good companies.Every organization needs this ‘talent’. So, how do we inspire them to apply or even consider what we have to offer? They would, most of the time,
not even look at a single advertisement, except maybe for a cursory glance. Employer branding is one of the essentials of a well-thought-out Human Capital Strategy. The exercise need not require truckloads of money, but some innovative thinking.
Induction Now you have the employee you wanted. He’s joined the organization. This is the time for you to consum-mate the alliance and build the real relationship. Induction is the time to set up expectations and capture critical potential indicators.
Good induction program: A good induction program is about communication. Treat the new recruit with respect and as a mature and responsible individual. Welcome him and make sure that he is comfortable. Introduce him to all relevant people individually.
Undersell the organization: The induction program is the time to manage the inductees’ expectations. Undersell the organization and make the presentations as professional and business like as possible. The expectations you set here will come back to haunt you later.
Lay down the organization’s expectations: This is also the time for you to lay down your expectations in terms of performance, professionalism and other values you want to espouse.
Clarity on organization values and policies: Walk the inductee through every policy and rules manual, this will help him know the organization better and not feel lost once he goes to work.
Lay down the PMS system: Clearly enunciate your Perfor-mance Management System. It is very critical for an employee to know what is expected out of him and what the performance parameters are.Also invest in soft skill programs (preferably in-house to get the right flavor). It shows an inductee the focus of your organization’s way of doing things. i.e. communication and team building.
Buddy scheme: Design a Buddy or Mentoring scheme (they are two distinct approaches) to help assimilate the new inductee into your organization smoothly.The induction program is the time to manage the inductees’ expectations. Undersell the organization and make the presentations as professional and business like as possible. The expectations you set here will come back to haunt you later.
Maintenance and motivationMaintenance and motivation form the bulk of HR activity today. An activity that is most central to our success as a people oriented organization. Your recruit is now on the job and is face to face with your world. Your relationship with your employees has begun and the analogy again is to a good marriage. There will be differences of opinion and arguments too. The success of this association will be judged by the ability of HR to keep the employee engaged.
Keep in touch: This is one of the basic management mantras for high motivational levels and employee satisfaction on various issues. Keep in touch with your people. Be aware of not just birthdays or anniversaries, but more importantly of the family and important events like graduation dates, any illnesses and so on. Employees’ performance and outlook on the job is a combination of all factors professional and personal. To do your job effectively, you need to be aware of all that affects your people. Your proactive initiative shall gradually develop into trust and that is the key to your employees staying with you. Manage by wandering around.
Map individual growth to organizational growth: Let the employee know how he grows when the company grows. And to make the company grow and fill up new positions, he has to grow and add value to himself. It’s a self-explanatory matrix.
Partner with line functions: HR can never succeed in isolated silos. One has to climb down from the ivory towers and integrate with the line function and become partners to the business in every sense of the word.
Uphold and educate leadership: This is the trickiest part. Always support leadership in the public discussions to uphold the organizational fabric, at the same time do not hesitate to educate the leadership if you need to in the larger interest of the organization.
Make the employee feel important: Keep track of his achievements and personally recognize his work whenever you can, in formal as well as informal discussions.
Take interest in his work: Go down to his workstation and try to understand what he is doing. The more interest you take in your people’s work the closer they shall come to you and open up.
Recognize contributions: Celebrate any exceptional contribu-tion in a big way. A transparent and objective reward and recognition scheme is a sure way of motivating an employee.
Empower employees, ensure cross-functional participation: Let the employees participate in shared activities like organizing monthly parties, festival parties, picnics, sports events, pantry committee, new office furnishings, etc. This makes employees feel like a part of the decision making process and the organiza-tion gets new perspectives. They will in turn be more receptive and less critical of such initiatives.
Encourage bonding: Encourage unofficial/informal events to create relationships. Involve their families in functions.
Provide learning and growth opportunities: Train for growth and overall personality development. An employer who cares for people is creating assets, which will add to his wealth creation.
Meritocracy: It’s about survival of the fittest and rewarding the better. Typically, 10-15 % of any organization comprises star performers (essential for growth), another 40-50% core workers (essential for stability and deliveries), next 15-30% drifters (just around; will do; need counseling to shape up) and the balance 15-25% dead wood (eating into your productivity). To promote meritocracy in your organizations you should “Reward the stars”, “Recognize the core”, “Counsel the drifters” and “Fire the dead wood”.”Typically, 10-15 % of any organization comprises star performers (essential for growth), another 40-50% core workers (essential for stability and deliveries), next 15-30% drifters (just around; will do; need counseling to shape up) and the balance 15-25% dead wood (eating into your productivity). To promote meritocracy in your organizations you should “Reward the stars”, “Recognize the core”, “Counsel the drifters” and “Fire the dead wood”.”