Human capital is the intangible asset of an organization that comprises of knowledge, skills, and experience of an employee in the organization. Further, it can be defined as a measure of economic value achieved by the firm due to the expertise of its employees. The term human capital is a relatively new addition to the business scenario of a firm. It was coined by economists Gary Becker and Theodore Schultz in the year 1960. Human Capital Management also includes providing an employee with education, research, and training. It will ensure the innovation of creative ideas and the continuous development of skills to reap more significant benefits for the organization.
The success of an organization depends on how the human capital manages the financial and intellectual capital. This highlights the importance of human capital. Even though technology is replacing redundant jobs, yet you need a human being to develop and run those technologies. We see a shift in demand from unskilled human capital to highly skilled and well-trained human resources. As of March 2020, the global unemployment rate is at 7.7% (the USA at 4.4%). The rate has steadily declined over the years. It means that finding the right talent has become even more challenging. This brings us to the benefits of investing in human capital -
- Lower Attrition rates
- Improved client engagement
- Increased employee productivity and engagement
- Increase in the organization's profits
The current pandemic has brought the world to a standstill. The spread of COVID19 globally has contained humans to stay within the premises of their homes. This pandemic has made working from home a new normal. Just like any other function, the search for human capital has also gone remote. In such a scenario, the search for talented candidates has become all the more challenging. An organization cannot leverage its grand infrastructure or work culture to attract a potential employee. The challenges for human capital development can be:
- Building a trusting environment
- Restricted communication
- Technological and technical difficulties
- Employee engagement
- Attracting the right talent for the position
In a world where one's home serves as an office, the traditional methods of contacting a potential employee have become irrelevant. An organization needs to have a digital presence to search the right candidates and communicate the value of joining the organization. Now it is a daunting task to scout for the right talent, conduct interviews, and find out whether the person is aligned with the organization's values and culture. Under normal circumstances, this seems challenging, let alone working remotely.
In such a situation, many organizations look for executive search companies to bridge this gap. Outsourcing the executive search process seems to be the best way out. Executive search firms have a pool of highly talented and experienced professionals. They understand your business and find the right match for your need. With this model, companies eliminate overhead costs, costs of hiring etc.
Executive search firms have become a significant platform for connecting with the potential human capital. It gives you the liberty of connecting with talented human capital across the globe.
Some of the unique and exciting strategies to attract the right talent adopted by executive search firms are
- Having an active social media presence and participation in relevant discussions
- Developing networks everywhere right from LinkedIn to Facebook
- Leverage from existing employees' network
However, all these strategies need expertise and manpower. Human Capital search remotely needs an organization to dig deeper. It is not only about skills but also how far one is willing to search for the right candidate. And the executive search firms have the right talent, skill and mind set to find you the right candidate. The right candidate will bring original ideas and contribute to the revenue of the firm. The remote search might require additional patience and time, but one can still manage the human capital search in the most effective manner.
At The Taplow Group we have extensive experience in designing, delivering and benchmarking Human Capital projects in addition to Human Capital Search, to ensure our clients fully realize their employees’ full potential. Get in touch with us today at www.TaplowGroup.com