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The Importance of Human Capital Management

What do you think is the most valuable resource in an organisation?


Well, the answer is employees. These are the individuals that spend the majority of their day and energy contributing towards the success of the organisation, making up the driving force that keeps it all running.


What is human capital management (HCM)?


HCM refers to the hiring of the right employees, managing & training them, developing their skills, and utilizing their competences to the fullest. In nurturing the people that make up the organisation, the entire entity inherently benefits.


Why is human capital management (HCM) essential?





HCM is essential for the hiring, managing, training and retention of top talent within an organisation.

Employing the right talent is key, and is a critical responsibility of the human resource team. Once an employee is recruited, HCM also plays a role in the onboarding of that employee – ensuring that the employee acclimatizes to the company culture and other team members.


HCM also helps with the training of employees, to ensure their skills are constantly updated. Employees that are constantly growing, improving, and getting the development they are after, are typically eager to keep growing and remain working with that organisation. This covers the HCM employee cycle from hiring to retention.


Overall HCM plays a crucial role in increasing the efficient and effective performance of employees which in turns helps to increase the overall productivity of the organisation.


What can your organisation do to ensure it has top talent?

There are 5 things the organisation can do to ensure it is developing and retaining its top talent:

  1. Train employees regularly

  2. Monitor employee performance

  3. Be transparent and communicate regularly and directly

  4. Ensure job roles are defined and clear

  5. Motivate and reward employees

What can you do to ensure your own success and development within an organisation?

  1. Do your utmost to achieve company goals and increase your value

  2. Sharpen your skills through regular education

  3. Develop new skills outside work hours

  4. Contribute, be passionate and get involved

  5. Communicate regularly with peers and colleagues

  6. Volunteer for tasks

  7. Be positive and smile


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