HUMAN CAPITAL TRENDS.pptx
- 2. THE TERM HUMAN CAPITAL HAS NOW BECOME COMMON IN HR LANGUAGE TO DESCRIBE PEOPLE AND THEIR COLLECTIVE SKILLS, ABILITIES, EXPERIENCE AND POTENTIAL. Human capital is an intangible asset not listed on a company's balance sheet. Human capital is said to include qualities like an employee's experience and skills. Since all labor is not considered equal, employers can improve human capital by investing in the training, education, and benefits of their employees. Human capital is perceived to have a relationship with economic growth, productivity, and profitability. Like any other asset, human capital has the ability to depreciate through long periods of unemployment, and the inability to keep up with technology and innovation. The economic value of a worker’s experience and skill
- 3. IF YOU WANT STAFF TO GIVE GREAT SERVICE, GIVE GREAT SERVICE TO STAFF----ARI WEINZWEIG Human capital refers to the skill and knowledge of human beings--- Michael Parkin People’s innate abilities and talents plus their knowledge, skills and experience that make them economically productive. Human Capital can be increased by investing in health care, education and job training---World Bank
- 5. HISTORY OF HUMAN CAPITAL • The idea of human capital can be traced back to the 18th century. Adam Smith referred to the concept in his book An Inquiry into the Nature and Causes of the Wealth of Nations, in which he explored the wealth, knowledge, training, talents, and experiences of a nation. Adam suggested that improving human capital through training and education leads to a more profitable enterprise, which adds to the collective wealth of society. • Gary Becker and Theodore Schultz, invented the term in the 1960s to reflect the value of human capacities. Schultz believed human capital was like any other form of capital to improve the quality and level of production. This would require an investment in the education, training, and enhanced benefits of an organization's employees.
- 6. WHAT MAKES UP HUMAN CAPITAL
- 7. CHALLENGES Strategic workforce planning • To help the business prepare for potential future challenges and opportunities. • To look at human capital in the context of the long-term goals of the organization as a whole. • Highly beneficial to visualize, anticipate and prepare for certain scenarios before they become a reality. Leveraging workforce analytics • Introducing specialist HCM software to help quicker hiring times to a more detailed understanding of how your people are performing and where additional training is required. • To get the best out of analytics, first you need to have a clear idea of what data is available to you and whether the information is accurate and up to date Training and development • Employees learning new things and expanding their skill sets feel more engaged and committed to their employer, which supports productivity and reduces turnover. • Training and skills development can pose a big challenge to the HR department, which needs to show that investment in this area is delivering returns. Change management • There are many types of organizational change that can have a big impact on the workforce and its productivity, particularly where new technologies and concepts like automation are concerned. • Being proactive and anticipating change, rather than simply reacting to it, is an invaluable quality that can raise your HCM standards to the next level. Talent acquisition and onboarding • Identifying and acquiring the right talent, a constant priority for businesses. • Devise an effective HCM strategy. • Dedicated software can offer benefits like: Automatic filtering of applications based on certain criteria, such as skills and experience Identification of the recruitment channels most likely to provide engagement with valuable candidates Tools to measure and analyze candidate engagement • Onboarding is another essential step in successful talent acquisition, since you want new arrivals to make a positive start to their role and become loyal, productive employees. One of the most valuable steps you can take in improving the onboarding process is to collect feedback from employees, which will give you a frontline view of procedures that work well and ones that need to improve.
- 9. HUMAN CAPITAL TRENDS: SEIZING THE WINDOW OF OPPORTUNITY WE’VE IDENTIFIED VARIOUS HUMAN TRENDS WE EXPECT WILL BE SHAPING IN THE WORKPLACE. SOME TRENDS HAVE BEEN ONGOING AS RECENT DEVELOPMENTS HAVE ACCELERATED THEM. MANY ARE THE RESULT OF DRASTIC CHANGES THAT ORGANIZATIONS HAVE HAD TO MAKE AND, IN SOME CASES, ARE STILL FACING. The pandemic has propelled digital transformation many years into the future. Although HR has been leading change and crisis in the past years, it runs the risk of missing the boat on this fundamental shift in how we work We believe that 2023 is HR’s window of opportunity to reposition the function’s value proposition in the post-pandemic reality. Human Resources professionals have played a significant role in guiding organizations through the storm of the pandemic and subsequent inflation surge and economic slowdown.
- 10. THE SURVIVE VS THRIVE MINDSET IN A WORLD OF PERPETUAL DISRUPTION, SURVIVING IS NOT ENOUGH. COVID -19 PANDEMIC PROVED THAT, WHEN FACED WITH AN UNPRECEDENTED CRISIS, ORGANIZATIONS AND WORKERS ARE CAPABLE OF TREMENDOUS RESILIENCE UNDER PRESSURE. THEY CAN ADAPT. THEY CAN PIVOT. THEY CAN SURVIVE. Surviving A survival mindset views disruptions as point-in-time crises to be addressed with the expectation that the organization will revert to “business as usual” once the crisis is over. It’s about doing what’s necessary to succeed today. Thriving A thrive mindset recognizes that disruption is continuous rather than episodic and embraces disruption as a catalyst to drive the organization forward. It’s about doing what’s possible, not just to succeed today, but also to dominate tomorrow
- 11. HUMAN CAPITAL TRENDS Designing Work for Well-Being • Organizations can restructure work in ways that help workers not only feel their best but perform at their best, strengthening the tie between well-being and organizational outcomes and fostering a greater sense of belonging overall. • Organizations that integrate well-being into the design of work at the individual, team, and organizational levels will build a sustainable future where workers can feel and perform at their best • we expect HR to move towards a more proactive approach to wellbeing and resilience. This involves developing a more holistic employee wellbeing approach focusing on mental, physical, and financial wellbeing.
- 13. HUMAN CAPITAL TRENDS Unleashing Worker Potential • Renewing workers’ skills is a tactical necessity, but reskilling is not a sufficient path forward by itself. Organizations should consider an approach that treats workforce development as a strategy for building worker and organizational resilience. • Empowering workers with agency and choice creates more value than overly prescriptive approaches. • Organizations that allow and facilitate their employees to explore passion areas will be able to create a more sustainable and effective workforce centered on business priorities and filling skill needs.
- 14. HUMAN CAPITAL TRENDS Setting New Directions for Work and the Workforce • Organizations that wish to innovate and succeed need to shift how they think about workforce insights and what they do with them. • Companies that continue to use data to improve old patterns of work are missing out on the option to use it to explore unchartered territory. • Forward-looking insights that ask how to act on important workforce issues can help organizations understand how to achieve new outcomes. • Organizations should begin to ask fundamentally new questions that can inform bold decisions around critical human capital risks and opportunities. • We’re entering a world in which it’s becoming paramount that organizations shift from using workforce insights to improve old patterns of work to using it to set new directions.
- 17. 4.WHERE WORK HAPPENS? • Collaboration and teaming became a life raft for organizations during COVID-19 . • Now, it’s time to take this one step forward with “superteams” – combinations of people and technology that leverage their capabilities at a speed and scale not otherwise obtainable. • Together, technology and people can make some truly incredible, innovative breakthroughs.
- 18. 5.ACCELERATING THE SHIFT TO RE-ARCHITECTING WORK • This trend is related to HR and the many ways this profession is innovating to meet the needs of organizations. • Many have already shifted from their traditional role of enforcing and standardizing workforce policies to their new role in orchestrating work in an agile and innovative fashion across the organization.