Currently, human capital is considered the most important element of competitive advantage in most organizations. Its management is crucial for business development, as people are the basis of knowledge and experience that support the company's value to the market.
Gone are the days when physical capital was the key variable of economic growth. Today, human capital is an organization's most important competitive resource. Therefore, it is not surprising that companies are always looking for assertive leaders. The development of human capital within organizations is the central challenge in formulating future competitive strategies.
Knowledge, more than ever, has proven to be a critical ingredient for achieving necessary advantages for organizations. Particularly, in recent decades, organizations have witnessed dramatic changes in the human workforce. The role of the leader has been adapting and transforming, with companies evolving to more aggressive competitive levels. Therefore, the use of organizational resources has become very decisive. Human capital, when properly managed, can create business value in the form of increased revenue, improved customer satisfaction, improved product and service quality, increased productivity and reduced costs.
And what is the best strategy to effectively manage human capital?
It is crucial, primarily, that the company has done its homework well. In other words, the company needs to have its mission and vision well defined. These values should be known and shared by the organization's employees. This is the vital link that will sustain any relationship and, consequently, the sharing of common ideas and goals.
Secondly, an assessment of the external environment is necessary to understand the opportunities and threats in the sector. This will also allow a more assertive analysis of the company's internal environment so that the strengths and weaknesses of the business are identified. From this moment on, the company is prepared to define the objectives and goals to formulate and implement the strategy that will give it a competitive advantage.
The strategic management of human resources must, of course, be aligned with the company's global objectives so that actions can be developed on human capital and derive the consequent benefits from there.
To obtain the maximum return from human capital, participatory management must be followed. Human Resources should be called to act as business partners and not just as mere collaborators. Ultimately, they must participate in defining and monitoring the business' strategic plan.
The Future of strategic human capital management
The Covid-19 pandemic showed that many companies were inattentive. Companies at all levels were put to the test and the rapid transition to teleworking revealed huge infrastructure gaps, insufficient Information Technology (IT) capacity, etc.
One of the most affected sectors was Human Resources in which there were already ongoing recruitment challenges with new reporting requirements. For example, concerns related to the gender pay gap and diversity, equity and inclusion initiatives. If we add all the new health and safety issues to this, it turns out that the pandemic has increased the workload of Human Resource Management (HR).
As the pandemic situation tends to stabilize, new priorities emerge and HR needs up-to-date technology. For example, competition for highly skilled employees is back now that the hiring freeze is over. It is necessary to promote a diverse workforce as well as provide modern tools to support organizational agility and increase everyone's involvement.
grupoGBI is consistently attentive to every possibility that helps to improve the quality of life for our employees. The Covid-19 Pandemic decreed a paradigm shift, related to the work model (where telework is still a kind of home office, but not every home office is telework), which we had already anticipated, in a process of digital transformation of our technology sector.
So, taking advantage of our experience over the last few years, we decided to create the StayON platform, a virtual environment to simplify the tasks of our daily journey, facilitate contacts and strengthen relationships between people and departments. With this platform, we include a set of tools that facilitate our daily lives and access to up-to-date information about our organization.