7 Key Benefits Of Good Human Capital Management

One of the biggest factors that will make or break a business is how well they deal with people. More specifically, we are focusing on how a company deals with its own people – its employees. In business terminology, we refer to this aspect of running a business as human capital management.

Good human capital management can do wonders for your business, helping it grow, flourish, and beat out the competition. Poor human capital management, on the other hand, can make growth lag and put you behind in the marketplace.

But how exactly do you define good human capital management? And what are its specific benefits? Read on for answers to those two pertinent questions and more!

What Exactly Is Good Human Capital Management?

Human capital management is defined as those business actions to do with attracting, hiring, onboarding, and training new talent as well as doing what it takes to retain old talent and improve workers’ skill levels.

It also includes handling payroll, tracking employee metrics, managing time and attendance issues, and a host of other actions related to employee morale and productivity.

From a pragmatic perspective, “good” human capital management is whatever helps all of these business activities we just included under the HCM umbrella to flawlessly flow without a glitch.

It is whatever keeps your employees happy, productive, and constantly prepared for new challenges in the workplace – while also contributing to overall business growth and success in the marketplace.

7 Key Benefits Of Managing Your Workforce Well

Pursuing good human capital management practices is more than a good idea, it is a necessity. And it’s not without its fruits. Those who learn to manage well and obtain the tools and technology to enable them to manage well efficiently, will reap the rewards.

Here are to top seven benefits you can expect your business to be bolstered by due to good HCM practices:

1. You save time – Some small businesses spend way too much time on mundane tasks like “doing payroll.” Payroll admin software and/or outsourcing can greatly simplify the process and speed it up! Other human resources systems and strategies too will save you much of your valuable time.
2. You save money – First of all, in the business world “time is money,” and we’ve already seen that good HRM will save you time. But it also helps prevent costly mistakes on payroll, taxes, regulations, and more. Plus, outsourcing all or part of your HR department means you can do the job for less.
3. Help with hiring & onboarding – Good human capital management software and systems help you streamline the hiring and onboarding process. The same applies to the less happy matter of terminations. There are legal and practical pitfalls that good HCM practices will help you avoid.
4. Streamline training & promotions – Good human capital management includes creating a career path for each and every employee. You can’t force anyone to walk it, but you make it available to those who wish to pursue it and who are willing to put in the necessary effort and time to follow through on it.
5. Reduction of employee turnover – It takes up a lot of time to constantly have to find, hire, and train new workers. Reduce employee turnover and that time goes into production instead. Mismanagement of employees can lead to “bleeding good employees,” and if it isn’t stopped, a company can actually “bleed to death.”
6. Good employee morale & higher productivity – Even if an employer is a regular Grinch and doesn’t care about employee morale for its own sake, they better care about it for the sake of their business’ future! Good human capital management includes programs and practices that keep workers happy, and happier workers are going to be more productive ones.
7. You win the war for workers – The bottom line is simple – smart HR practices make your company a place that people want to work. You compete for top talent, win, and become the better-staffed company. You also find ways to create good workers, training them from the ground up. 
   
   

Where Can I Go For Help?

Human capital management and human resources are a big part of running a successful business, and yet, it’s hard for many small to medium-sized businesses to afford a large in-house HR or HCM department.

What can you do? Thankfully, there is help available in the area of human capital management that is both affordable and practical. You can get timely HCM consulting on-site or over the phone. You can invest in the best HCM software. And there are specialist HCM outsourcing companies that can manage your HCM needs for you and save you money at the same time.

To learn more about human capital management solutions and related matters that can help your business succeed, contact Flagler Financial Inc. today for a free initial consultation and a free no-obligation quote!