In the simplest of terms human capital means the value that employees add to an organization. This value is assessed with the help of their skillset, knowledge, and abilities. According to several surveys, most companies don’t invest properly in Human Capital Development and don’t focus on it as much as they should. Human capital development
doesn’t just translate in increased profits but also benefits the organization immensely in the longer run. A specialist human capital services firm can help organizations realize the value of human capital development and shift focus to it.
Here are some of the most important benefits of investing in Human Capital Development are:
1. Contribute Towards Higher Employee Satisfaction And Retention Rates
Investing in human capital development
leads to employees feeling valued and cared for, which in turn leads to employee satisfaction. An organization’s commitment to human capital development using the right tools shows all the people working for the organization that the business cares about the professional growth of all individuals contributing. Career development opportunities also contribute to higher retention rates. Studies have reflected that employees prefer opportunities for growth and advancements over salary hikes. People who are constantly being trained and their skillset being polished and improved, experience less work stress and anxiety and are more loyal to the organization providing such opportunities.
2. Increased Employee Engagement
Every business with high employee engagement thrives. Engagement amongst employees leads to more productivity and loyalty. Human Capital Development
gives employees the right motivation to stay engaged and focused. It also drives them towards a common goal which is overall success of the organization.
3. Better ROI
Every organization consciously or unconsciously invests in human capital, since salaries, benefits, perks etc. all are a form of human capital
investment. Since every company is actively investing in human capital in one way or another, you might as well spend a little more towards human capital development and get the results you need. A good proportion of profits should be dedicated towards betterment of the employees in order to maximize your ROI. Opportunities for growth and learning will ultimately improve your bottom-line.
4. More Effective Recruiting
As mentioned above, focusing on human capital development leads to higher retention rates. At the same time, it also helps you hire better people for the organization. It looks extremely attractive to potential candidates, especially millennials, when the company believes in helping your career grow and provides opportunities for the same by allocating significant resources towards human capital search and development. Human capital services
display a company’s commitment to its employees.
5. Thriving Work Culture
Increased employee satisfaction, communication and engagement leads to a more positive and healthy work environment. All these learning and growth opportunities not only inspire employees but also motivate them to be more present at work. A positive culture leads to people being more productive on a daily basis and showing up happy to work.
At The Taplow Group we not only help you source the best-fit for your organization’s leadership through our executive search consultants but also train and develop them to hone their skills. To know more about our human capital search services
like leadership coaching, professional hiring, management consulting, reach out to us at www.taplowgroup.com