HumHuman Capital Management. What is this model
 and why is it essential for organizations?

Opinion Article by José Chéu, Board Member, Operations & Delivery Director of Abaco Consulting for RH Magazine [PT Only]: https://bit.ly/3tk0KmR

«Managing human capital is therefore the basis for the growth of a company, since it is the work and performance of employees that will determine the good or bad organizational results. In this sense, when we talk about Human Resources Management, it is imperative that the organization is able to satisfy and balance the personal and professional needs of each employee, promoting a healthy and conducive environment for the best performance of the functions.»

Over the last two decades, we have seen an exponential growth in the number of debates, discussions, research and investigations associated with the practice of Human Resources. Over the years, this department has adopted strategic components linked to the corporate vision of organizations, thus creating more and more differentiating factors.

The truth is that this strategic approach, in line with talent management, provided concepts that the Human Resources sector needed to become central in today’s organizational world. These concepts, in turn, involve managing people and objectives in accordance with the organization’s values and business principles.

Managing human capital is then the basis for a company’s growth, since it is the work and performance of employees that will determine good or bad organizational results. In this sense, when we talk about Human Resources Management, it is imperative that the organization is able to satisfy and balance the personal and professional needs of each employee, promoting a healthy and conducive environment for the best performance of the functions.

It is in this same context that the HCM – Human Capital Management emerges, a model that seeks to align technology with the organization’s talents. In other words, it goes far beyond traditional human resources management, it seeks to align organizational objectives and results with the individual compensation model in order to extract the best from employees. Through monitoring control tools, it is possible to monitor a series of indicators that enhance the organization’s objectives, such as employee productivity, absenteeism rates, as well as the collective degree of satisfaction, their motivation and involvement with the organization. Only in this way, managers can see which employees are truly human capital within the organization, providing them with the proper physical and psychological well-being.

We can identify 5 benefits that a correct and holistic approach to Human Capital Management can have in Organizations:

1. Attracting and retaining talent
First, to build a competent team, there must be quality in the admissions process. Identify the appropriate candidate profile for an organization, through the network of internal contacts, specialty companies or the numerous disruptive tools, and manage these professionals by their skills, thus providing a greater financial return. Increasing involvement, with professional career solutions, for example, helps to motivate and provide a quality experience to employees. In this way, it retains and cultivates talent through its professional development.

2. Professional development
Promoting online and in-person training for employees is one of the main techniques to improve the skills of each professional. Managing human capital means working on the values ​​and skills that each individual can offer to the organization. Through these trainings and, consequently, apprenticeships, talents are more motivated and committed to their organizational functions.

Likewise, the day-to-day challenges in carrying out your professional activity are also of crucial importance, for example, in the provision of consultancy services, the wealth of experience that this activity brings through the work developed with clients. from the different sectors of activity (textile, automobile, food, engineering and construction, banking, health, etc.) with different cultures, different ways of working, different decision-making processes and, of course, different people, allows one to accumulate work experiences very enriching.

3. Human capital performance management
Assessing an employee’s behavioral profile provides the organization with relevant information about them, from their strengths to their insecurities. Thus, we managed to have a more secure and concrete decision-making. This assessment allows for the enhancement of human capital and, consequently, of the organization as a whole. After the assessment, it is important to give feedback to the employee, that is, giving constant feedback helps to keep human capital involved, focused and motivated. Support, giving tips to improve work, constructive criticism, or even praise are essential for professional development and growth.

4. Organizational environment
A company’s set of values, beliefs and behaviors are defined by the way managers conduct the business and their teams, reflecting on the organizational culture. Having personal goals aligned with the business strategy, the organization will have inspired employees focused on what is really important to everyone. This avoids attrition, conflicts of interest, or a misalignment between internal communication and the actions taken. Encouraging good interaction between everyone and providing opportunities for career development is essential to create a harmonious atmosphere.

5. Cost reduction
Finally, and somewhat as a corollary of all the benefits already listed, another of the great advantages of the HCM is, without a doubt, the reduction in operating costs. On the one hand, in the retention and consequent savings in the costs involved in a new hire, on the other hand, by the development and stimulation of employees’ skills and abilities, since well-prepared professionals tend to make fewer mistakes, then present greater productivity in the performance of their functions .

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In conclusion, the HCM is a model that will bring clear advantages to organizations, and technology will always be an ally to involve the new generations that are coming to companies and the labor market. This allows, on the one hand, a more precise control of the employees’ performance and, on the other, an increasing concern with them.

More than ever, today it is noticeable that professionals need to be valued in their workplace and to be involved with the organization, but at the same time, they must take into account their safety, as well as their physical well-being and psychological.

This is the secret to achieving personal and professional balance and having a strong and cohesive team. Who loves, cares!