Maximize Your Human Capital Investment
Many companies regard staff as purely a cost of doing business. Actually, this perception is incorrect. Although the money spent on payroll could well be your largest cash investment, a staff of properly hired and trained employees can increase your bottom line significantly. Often overlooked, your staff is easily the most important investment your company can make.
Equipment manufacturers will help you calculate your ROI to justify the purchase as a sales tool. Can you also measure the ROI on human capital? The answer is a qualified yes. Variables such as salary demands, employee benefits, training and job market conditions can throw off projected budgets considerably, but they can still be measured to a useful degree.
As with equipment, when you prepare to invest in human capital, you first need to evaluate the potential fit between your new acquisition and your company’s needs. Determine what your company does best, then hire for matching skill characteristics in job candidates. You can identify areas where your company may have shortcomings and seeking new hires can fill these vital gaps. You need to analyze and recruit the appropriate talent to provide what your customers require. Remember, productivity of your workforce leverages all other assets. It is pivotal in executing a business strategy and improving profitability.
To ensure a good ROI in human capital you must create a description for each job function and identify the skills, considering not just the educational and technical skills but also the soft skills. These soft skills include cultural fit, temperament, communication (verbal and written) and the ability to work and play well with others on the team. Work ethic, self-confidence, ability to handle pressure and multi-tasking are key attributes in a good hire. We help employers become better interviewers, encourage the use of predictive testing and help define the specific role of the candidate so expectations are realistic and achievable. Intuitive hiring is not foolproof and can often be very costly. We can be instrumental in avoiding the pitfalls of bad hires especially during challenging times.
Finally, incentivize your employees and listen to what they have to say about your business. Acknowledge them as individuals and not cogs in the manufacturing process. Earning their dedication, loyalty and commitment to excellence will result in the best investment you ever made.