Human Capital Management: Importance and Benefits
Human resource has always been the backbone of any organization and you will not wonder if we add here that it has always been important for any organization. Human capital has always been asset for any organization. But the success of any organization depends completely on how much organizes utilizes its human resource. If the organization is successful in managing its human capital to the utmost level then, the organization is able to attain competitive advantage over its competitors. In other words, Human Capital Management is a set of practices like developing, managing and optimizing the human resources of an organization.
Human Capital Management is somehow synonymous to Human Resource function. Employees are known as the lifeline of organization as the organizations cannot run without its employees. Every employee contributes in the organization in one or other way in increasing productivity and achieving success. They are motivated time to time so that they can feel attached towards the organization. Human Capital Management means managing the human resource in such a way so that the employees can contribute efficiently to the overall productivity of the organization.
Human capital management also means upgrading skills of the human resource and extracting the best from them so that the ultimate goal of the organization can be achieved. It is important to know that you must not treat your employees as your labors. You should promote them to take part in prominent decisions of the organization.
Importance of Human Capital Management
As you know that employees spend a maximum number of hours in the organization, hence, human capital management plays a vital role. Here, we share some of the importance of human capital management:-
Recruitment and Hiring – Human Capital Management plays a crucial role as the management must hire those individuals who really deserve the organization. Hiring the unfit candidate can bring loss to the organization.
Training and development – As we are blessed with new technologies starting from smart phones to artificial intelligence, human capital management plays a major role in any organization. To make the employees ready to adapt for new technologies, employees must be trained and developed time to time.
Employee retention – Employee retention means providing the facilities to the employees so that they can remain in the organization. Human capital management helps you to find the potential of the employees, take work from them and then justify their work through appropriate payment.
Employee Orientation program – Employees go through a number of confusions before joining the organization. So, the orientation program should be in such a way so that the employee can be motivated to join the organization and can see a good career in that organization.
Benefits of Human Capital Management
Human Capital Management has helped the organizations to come more close to their employees. Here we share some of the benefits of Human Capital Management:-
- It helps in extracting the best out of its employees.
- It helps in selecting the right candidate for right job, at right place.
- It promotes float of information freely between the management and the subordinates so that the goals of the organization can be easily made clear as well as the management can know the problems of the employees.
- It promotes time to time training and development activities within the organization so that the organization can help their employees in enhancing their professional skills.
Thus, Human Capital Management in overall helps the organization in achieving its goals and objectives by enhancing the skills of human resource as well as by motivating them to perform well.