4 Reasons to Involve HR in Human Capital Planning
Chief of Minds | Jun 8, 2020It’s a new year, but in order for it to become a better year, you’ll have to actively plan for it! We suggest starting with one of the largest costs your business faces — the humans working behind the desk and in the field. Human capital is the economic value your employees provide through their skills, experience, innovative ideas and knowledge, and at the end of the day, your company’s survival is based on its effectiveness, productivity and structure.
The ‘people costs’ can be a major downfall when you have the wrong employees in the wrong positions or when you fail to invest in their growth and advancement. However, it can be a major opportunity when they are strategically recruited, trained, motivated and developed. This is why when it comes to human capital planning, HR professionals must be brought on board. To help you understand why their addition to the execution process is extremely beneficial, we’ve listed the top four reasons you should always involve HR in human capital planning.
1. They have a better understanding of the “human” aspect in human capital.
Today, your workforce is made up of a wide range of age groups, races, nationalities, skillsets, talents and educational backgrounds. Therefore, human capital strategic decisions must involve those with in-depth knowledge of the company’s key assets — the people. Human resource professionals are skilled in interacting with employees throughout various stages of their careers and are also best suited for knowing where to locate prospects, what market to pursue, and who to employ for which new positions.
2. They have the insight to streamline recruiting processes.
Building human capital goes far beyond posting descriptive job ads and hoping the interview process goes well. Data-driven HR professionals are equipped to develop and analyze material to ensure the hiring process is efficient and highly accurate. They can provide fact-based solutions to reduce careless mistakes in the development phases, as well as offer solutions and proper training and programs to handle problems that may arise.
3. They understand the company’s culture and goals.
HR leaders pride themselves on being fully involved in building a workforce that aligns with the executives’ vision and mission. It’s their job to know the culture of the company and take actionable steps in meeting your business goals and objects so when it’s time to recruit, train or motivate your team, they will already have an implementation and communication plan in place. This is a beneficial asset for business executives preparing their human capital process.
4. They recognize skill shortages.
Focused on building a multidimensional workforce for your company, HR professionals have a niche for identifying skill gaps. They are experts in finding solutions for filling all skilled positions. Your HR team will also be aware of various talent programs and development strategies necessary to fix any issues your management team needs.
Remember, your company’s success rests upon its human capital. Having an effective human resources management professional in collaboration with the planning process will tremendously improve your bottom line and help you reach both short-term and long-term goals.
Was this article useful? Chief of Minds provides innovative human resources and payroll services that position your business for growth and increase productivity and profitability. Our full-service human resources strategy firm focuses on helping small to medium businesses decrease workload, improve HR functions and reduce costs. Contact us today and allow us to either work with your existing HR department or serve as your company’s HR department. We’re here for you to win!