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Ways for organizations to increase human capital.

FeedMyPockets – Gig Economy (Vol.55)

Human capital refers to the skills, knowledge, and experience possessed by an individual, which can be used to add value to the organization. It includes all intangible assets of an individual that can be used to create economic value for the employers.

As we know an organization is as good as its manpower. And ensuring a good manpower means investing in human capital. Human capital is an asset that consists of the knowledge and skills held by a person which can be used to achieve the organization’s goals. Human capital is important because some amount of human knowledge and skills are essential to achieve anything in an organization.

As we can see how important human capital is, companies need to find ways to increase it for their progress and betterment. These include :-

1.Trainings and seminars :- Knowledge is something that is never enough. It is one attribute that needs to be constantly acquired. Companies must conduct frequent trainings or seminars in order to upgrade their employees knowledge. It is important to keep their employees aware of the latest technologies and keep them up to date. Hence conducting trainings and seminars is very important.

2. Performance review :- It is very important to periodically conduct appraisals and reviews your employees performance. This boosts their confidence and give them assurance that their heading in the right direction. It also helps organisations to know their employees better and overall helps in better human capital.

3. Weekly reporting :- It is also important to have a weekly reporting system. Wherein an employee can input the work they have done. This gives them a sense of accountability and makes them more responsible. The reporting could also include an activity taken up to increase one’s knowledge or skill.

4. Direct communication:- Having a free communication system between employees and their bosses or higher management helps employees to communicate better. They must be made comfortable to address any query and raise any questions. This helps them to express better and improve as well.

5. Networking:- It is important that employees are able to networks and connect with each other. Having a strong employee bond gives employee comfort and they are able to perform better. Companies must engage in team-building and fun activities to help employees network and connect with each other.

6. Well defined job role:- When the roles and responsibilities of an employee are well defined it gets easier for employees to focus on their jobs better. They are more focused to complete their tasks and know what results are expected from them.

7. Recognizing individuality:- Every employee is different and each one is gifted with their own individuality and creativity. Companies must recognize that and must approach each individual differently. One rule for all doesn’t apply if we are looking at having a strong employee relationship. Recognising them for their individuality boosts their morale and helps to perform better.

8. Motivation and recognition:- recognizing employees’ contributions and valuing their efforts goes a long way to build a strong human capital. Compensating them with incentives and other benefits is also an effective way of keeping employees motivated.

9. Flexible:- being flexible with employees and allowing them benefits like work from home options or through flexible working hours encourages employees to perform better.

These are a few and important aspects that companies can use to increase their human capital. Human capital is an asset for any organization and finding means to increase it only proves beneficial for the company.

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