Human Capital Management Tips for Modern SMEs
The concept of human capital management stems from the belief that human capital is more important to an organization than financial capital, especially after a company is settled. Taking care of employees ensures that your employees stay productive, motivated, and efficient. It also ensures that you retain said, employees.
Human capital is the summation of skills, qualifications, talents, and the accumulated experience of your employees. It’s calculated by working out how many of these factors contribute to the company’s economic activity.
Human capital management is the combination of different strategies (including employee engagement and team-building activities) for handling employees. The following are some human capital management tips for better management of your employees.
People Don’t Leave Companies, they Leave Bosses
Finding the right person for your organization can be difficult and retaining them can be even harder. That is why it’s best to provide your employees with what they want and keep them satisfied. However, what’s more important is to make sure that they are treated the right way by their superiors. This is because most employees tend to quit their bosses or managers, rather than the company itself.
If you feel like an employee is having trouble and is thinking of leaving their job, you should approach them and offer a change. It’s best to offer them work under a different boss or manager. There is a good chance that alone might fix their problem.
Lots of employees tend to avoid complaining about their managers due to fear of repercussions. This is why it’s imperative that you approach each of your employees individually and inquire about them.
Train, Coach, Repeat
One of the best ways to provide true value to your employees is by offering them more knowledge. The learning process never stops anyone and if you offer free courses, training, and learning opportunities to your employees, they will take it and appreciate it.
Furthermore, you should offer learning opportunities and coaching courses to your managers, so that they can then help their employees in the same way. This way, employees will not only be happy with the company but also their managers and bosses.
Managers should know how to provide constructive feedback, share their knowledge, give clear instructions, encourage good behavior, and develop trust so that the employees can reach their full potential.
Assign Roles Not Jobs
Every employee has their own specialty which cannot be replicated by anyone else. But then again, every employee has their own specific role and sometimes it isn’t in the job they are currently working in. That is why it’s best to assign your employees roles rather than jobs. For example, if you have a computer engineer, you shouldn’t give them a computer engineering job, but rather the role of developing the company’s computer systems for increased efficiency and automation of tasks.
This gives employees a sense of purpose, while also giving them leeway to explore new opportunities. This will prevent them from staying limited to only one specific aspect of it. It also ensures that the employee can find what they want to do within their fields with absolute surety.
If you can help someone determine what they want to do in their field, you know you’ve done something for them that they will never forget.
Human Capital Management and Teams
Like all human beings, your employees need a connection with other employees. That is why building a team is an important part of human capital management. Contrary to popular belief, a team isn’t just all of the people in a specific department, or all the people working on a project.
A team is a group of individuals who understand each other, each other’s work, value each other’s opinions, and can genuinely communicate both personally and professionally.
This means that all the members of the team should fit with each other. Think of them are parts in a whole puzzle, without even one part, the puzzle would feel incomplete but wouldn’t dissipate. Each team member will have their own tasks and objectives but will work towards a common goal and for a common cause.
The most important part of a team is the team head. They are responsible for keeping the team in order and keeping all team members under check. It’s also their responsibility to make sure that there are no conflicts or issues. They should also plan out team-building activities.
The Bottom Line
A company’s human capital is the foundation upon which it works. Your employees are the ones that drive your profits. Therefore, it’s important to keep them satisfied. Human capital management is especially important in SMEs because the culture and environment are different from larger companies. You do not have the luxury to pay large salaries and you can’t provide over-the-top benefits
What you can provide is fun team building activities, a good working environment, stability, learning opportunities, and a good team, so that your employees can relaxed and happy.