Set up Your Business for Success: 7 Key Principles of Strategic Human Capital Management

Across the globe, approximately 66 percent of organizations have adopted some kind of human capital management solution. Are you interested in following suit and implementing a human capital strategy at your company? 

If so, you’re in the right place. Read on to learn more about strategic human capital management and the key principles you need to follow to choose a system and help your employees perform to the best of their abilities.

What Is Human Capital Management?

The term “human capital management” refers to a series of practices related to personnel management in the workplace. There are three main categories into which these practices can be divided: workforce acquisition, management, and optimization. 

Human capital management systems help to make the management process more efficient. They provide one convenient location for all personnel management materials and make it easier for HR workers to gather and analyze data to make informed decisions.

Benefits of a Human Capital Management Plan

There are lots of advantages that come with having a solid human capital management plan in place at your business. The following are some of the greatest ones to keep in mind:

  • Create a unified platform for processes like payroll, productivity management, and HR
  • Collect important data that you can use to make strategic future decisions about the company and its employees
  • Help employees develop their talents 
  • Increase employee retention rates
  • Allow for greater convenience for employees when it comes to clocking in and out and managing their benefits

Human capital management plans also allow businesses to enjoy an easier recruitment process. Human resource workers and supervisors can use the data gathered from their human capital management platform to find more qualified candidates and keep track of their information with ease.

Top 7 Human Capital Management Strategies

Now that you know more about what a human capital strategy is and the benefits it has to offer your business, let’s get specific. Here are seven effective steps you ought to take when creating a plan for your office’s personnel management.

1. Understand Company Objectives

A good starting point when creating a human capital management plan is to identify the specific goals for your company. What do you want to accomplish by implementing such a system?

Do you want to improve recruitment? Allow for better employee onboarding and training? Simplify the payroll management and benefits process?

Talk to your HR department, and find out where they’re struggling the most. Then, work with them to come up with clear goals and identify the ways that your human capital management strategy can be used to accomplish them.

2. Evaluate HR and Employee Capabilities

When you’re talking to the members of your HR department, pay special attention to their current capabilities. What skills do they bring to the table? Are there any deficits that can be addressed with the help of a human capital management system? 

At the same time, talk to your HR department as well about the competencies of your other employees. Are there any workers who stand out and are going above and beyond for the company? Have they demonstrated special skills that might be useful in other areas?

3. Analyze Current Workplace Capacity

Consider the capacity of your workplace and employees. How many people do you have working for you? Do you have room to bring on more team members? 

Pay attention to factors like time and expense management, too. How many overtime hours are your workers clocking right now? What does an average schedule look like? 

It’s important for you to know about the way resources are being used at your company. Understanding this information will make it easier for you to create an effective strategy moving forward.

4. Estimate Company’s Future Needs

Don’t focus solely only on how the company is doing and what it needs now. Think, too, about what it might need in the future.

Based on your current revenue levels, do you think there will be room for more employees in the future? If so, now is a good time to start gathering data and figuring out what kind of employees you might need.

Consider the number of people you might want to bring on. Assess the specific skillsets for which you ought to start searching as well.

5. Consider Necessary Tools

What kind of tools and special features would make the human capital management process easier?

Do you need a platform with a robust scheduling and payroll management system? Is it better for you to invest in a program that streamlines the employee training process?

6. Implement a Human Capital Management Strategy

At a certain point, the only way to tell if a human capital management system works is to implement it and let your employees use it. Once you’ve made a decision and had a chance to get your HR team trained, let them put the system to the test.

After a few weeks, they’ll likely be able to tell you whether or not it’s a good fit for them. Give them a chance to use it in various stages, though. For example, they should have a chance to use it during the recruitment and onboarding process, as well as for things like payroll management and scheduling.

7. Evaluate and Adjust

Finally, don’t be afraid to evaluate and make adjustments to your strategy as needed. As the professionals at Genie Payroll Plus have pointed out, the right system should simplify human resources management for everyone.

It may take some time for everyone to get used to the new system, though. After it’s been in place for a while, assess how everyone’s doing and consider the effectiveness of your current strategy.

If the system is not up to par, talk to your employees and look for ways to make helpful changes. Let them be involved in the process so they feel like they have a say and that their voice matters to you and the company as a whole.

Give Strategic Human Capital Management a Try Today

Are you interested in creating a strategic human capital management plan at your business? If so, be sure to include the tips outlined above. They’ll help you get the most of your plan and set your employees up for long-term success.

Do you want to learn more about other effective business management strategies? If so, check out some of the other resources on our site today. The Business Resources section is full of helpful tips and tricks.