What Is Human Capital?
Human Capital can normally be described as an intangible asset or quality and is almost never listed on the company balance sheet. At Innermetrix UK we understand the value in treating , developing and defining human capital and the positive difference human capital can make to a company’s success ,so why aren’t the human resources team involved in the decision making process of the company’s business plan ?
When a company hires someone there is a set of definitions within the job role and responsibilities and the company needs to make a profit on the individual’s performance to enable continuous hiring of that position, so therefore surely there is justification for treating human capital as an asset??
Of course not all tasks , responsibilities and duties are the same as indeed is performance however there lies the challenge, the process in terms of simplistic definition is the same, the employee , must be supported, managed and measured in terms of satisfactory output . so why do we sometimes treat our people indifferently and without value?
If Human capital is nurtured and developed the result is increased productivity, satisfaction, and longevity, so therefore the more a company invests in its employees, the more return on investment (not just cash) in every area of the business
A reflective view
It is often said that any company or organisation is only good as its people, everyone from the ground floor to the leadership team are critical to these success factors.
You have often heard that “pride often comes before a fall” this is often true about leadership dynamics; we find that if the leadership is wrong the business is wrong , a very true and famous saying highlights this perfectly
I am more afraid of an army of 100 sheep led by a lion than an army of 100 lions led by a sheep.
How is your leadership? And what value do you put on human capital?
IF YOU ARE READING THIS MESSAGE YOU ARE IN LUCK!
Innermetrix UK are experts in human capital and the dynamics of true leadership to enhance and change your life. If you want to choose success get in touch now, the only way is up!!