5 Practices to Improve Human Capital Management

The most important asset of companies is their human capital. Companies know this and this is why they are increasingly focused on improving human capital management. And it is because the organizations have understood that their workforce is key to increase competitiveness and profitability.

 

When you speak of human capital management it makes reference to a set of processes that an organization carries out to attract, develop, motivate, and retain its collaborators. This is important because having qualified and happy professionals in the company assures that they will be more productive and therefore, will report greater financial benefits. 

 

For a company to loose key human talent implies a waste of time and money. A new employee can take up to 6 months to get the productivity of his predecessor. 

Strategies to improve Human Capital Management (HCM)

  1. Create a training and development program for the company

Focus on developing the employees that you already have in the organization. For that you can design processes that allow people to advance in the company, by acquiring new responsibilities or changing positions.  Also, it is essential that you strengthen their abilities through development programs that allow them to acquire new knowledge. 

  1. Plan your recruitment based on company needs

To improve human capital management, you also need an adequate selection of staff.  This is why that at the time of recruiting it is recommended to be aware of the company’s needs, this way you can select people with the right skills for the position that is being looked for in the present, although always thinking about possible future needs. 

  1. Recognize employee achievements

Another relevant practice is to recognize employee achievements.  A reward, ranging from a few words or a day off to prizes and financial incentives.  Recognizing employee efforts and the reasons to continue working better, drives the commitment to the organization.

  1. Simplify recruitment process

At the time of recruiting staff, simplify the processes so that it is not discouraging for the current employee and the prospective employee. The simplification of processes will reduce the waste of time and money, increasing the competitiveness and profitability of the organization that will result in more qualified prospects and better selection of talent.

5.  Automate processes

Another effective way of improving human capital management is to use a human resources software like Oracle HCM. This solution may help you simplify tasks and cover the company’s needs in a more efficient way. Best of all, with this tool you can manage the entire talent life cycle, including aspects such as recruitment, management and job development. 

If you want to improve the human capital management tools, in Fusionworks we can help you. Contact us  and we will provide you with all the information you need to implement this solution in your company. 

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