The abstract nature of human resources in an organisation cannot be omitted and there has to be a working human capital plan in action to bring about this efficiency in every workplace. The HR department cannot work in isolation or with unplanned strategic moves. It is with careful planning and decision making that smooth flowing and conducive work environment, with intelligible workforce comes into existence.
One such plan is the human capital plan. Pretty decisive from its name, the human capital plan is all about the people working in an organisation. The employees being the most important resources that swing actions into outcomes, should be dealt with and managed in accordance with well-rounded plans and managerial staff. This becomes needed effective outputs and progressive work is desired.
Multitudinous organisations and corporations of North America, Europe and Asia prove the same as per their annual reports. They are of the opinion that their human capital and intellectual property are their momentum holdings. It has become a key strategic move to manage human capital now more than ever before. The benefits and Wellness of employees talent management compensations add up to the real expenses that an organisation has to incur and as visible are human capital stricken tactics.
All HR practices, personnel, and management systems should look into the spheres that cater to human capital primarily. Otherwise, the functionalities of HR professionals would be limited to administrative capacities only. The changing times ask of an HR Department to fabricate and direct those useful and productive Technologies that are able to withstand any circumstances (pertaining to both interior and exterior influential elements).
What is a Human Capital Plan?
In plain words, a human capital plan is what acts as a shield and alongside gives direction to the HR department when faced with times of human capital changes and emerging needs. A human capital plan is strictly necessary and obligatory too. Such a plan if made keeping all due considerations regarding the people who make the organisation and work for it, its contributing factors, goals (both long term and short term), values and departments will demonstrate its effectiveness from sensitive to everyday workplace environment. Human capital plan is built, taking all necessary practices, policies and actions while building up a good combination of them which will not only prove powerful but productive too. Strategies will help to face challenges pertaining to having leadership, workforce skills, performance, retention, talent management, etc.
All an HR has to work towards, is finding strategies firstly and secondly by putting in metrix to weight them. This will come out to serve as a human capital strategy. All organization businesses, however big or small should form a human capital strategy which is personalized and customized as per the needs, wants and goals of their own organisations.
There are certain guiding principles that can and be considered while concreting human capital plan.
To begin with these principles are as follows:
- Deeming Human Capital Issues as Important
An HR ought to weigh the significance of human capital issues on the business or organisation. A fundamental element of this human capital plan is to look into human capital issues diligently and measure their impact and effectiveness. A Human capital plan built adjacent to this will give insight into how the workforce and frameworks should be like.
2. Knot Human Capital Plans and Business Results
Any human capital plan should not be in isolation to business results. Issues appurtenant to human capital must be considered influential and of utter significance. For this human capital plans and results should be tied together. Just by assigning a cost to human capital matters will not be optimal. In order to come up with human capital plan, all human capital matters must be looked up as an investment.
this can either be done by increasing the size of revenue per employee or by minimising order decreasing the cost per employee. In the former benefits unique to the market and helpful moreover, should be thought of. Anything avant-garde to the organization will be fresh to the market. Time please aap with your business services will become undefeatable. In the latter option of human capital plan careful study and analysis would suffice. Balance the cost per employee to an extent that it is neither too high nor too low and is in equilibrium with your company goals and cost.
3. Customize Best Practices as per your Business and Industry
Best practices are those HR practices that are universal and general, so that they can be applied to every business or company. But blindly putting in best practices and not thinking about the output and the course it will set in motion is nothing but a poor policy.
Therefore best practices can become a model up against which, the final strategies and contingency plans can be erected. A major thing that HRs should notice is that everything is integrated. When every practice or strategy is working intertwined with the other, there is harmony and all the pieces (different departments with their works) tie together in the end, working towards a common goal.
4. Develop Policies that are Industry and Work Specific
Since every firm is unique and is doing work as per their customer or market demands, emulating any will be of no use. It should be the HR department's responsibility to look into targeting company goals and customising best practices and other new strategies so that they can be a strong working model. Against this company model which is strategically abled and solvent, readily all the human capital should be pinned and work according to it. A key element that an HR person ought to take note, is the fact that the policies should be working and unique to the environment. In short they should be company specific.
5. Plan Two Steps Ahead
A human capital plan should not just be limited to the present. It should go and see beyond what is currently visible. Speaking of
6. Develop a Flexible and a Working Process
Build such a human capital plan that is able to be tweaked or modified and has room for change so that any modifications can be adopted. A strict plan will bring nothing but complications.
7. Build a Human Capital Plan Together
Firstly, it is needed that a human can plan is in action and the workplace is in accordance to it Secondly, when a human capital plan is in its developmental phase, it should be a collective responsibility for all. This comprises not only the HR department but other business leader and company officials too. Building a human capital plan, without giving considerable thought or analysis will not be useful and just lie there for the sake of it.
8. Build Plans Priority Wise
The human capital plan must encompass all those activities that are of high interest to the business. Hence all the activities must be listed priority wise and plans should be made as per them. Make those plans that logically seem to be most influential to the business, company and the workforce. An HR department should put in all statistics and analysis available on their end to be able to come up with a human capital plan. Limit your actions and prioritize to make effective plans.
9. Develop a Value Chain
A value chain is one that keeps the vision in mind and looks to achieve the goals and takes due diligence of those actions that will help to achieve them. Such a value chain if referred to, will give the hindrance and tight spots that can hamper growth. A look into these is also necessary to build up a plan against them.
Therefore, a value chain with realistic data and attainable goals is key to building a human capital plan. When it is about creating a human capital plan, the aim is to add value to process to amp up it's productivity and relevance. For this reason a sophisticated process should be in action.
10. Take the View From Outside as Primary
Obviously a human capital plan is about matters being dealt with from the inside. But all those HR specialist ought to take the point of view of the customers, because what your firm produces and sells is what makes the value. Unscrambling it, all HR departments, be it any sector or industry, must prioritize to keep the view that a customer will get from the outside. This comprise of the revenue per employee and also the cost per employee in regards to customers.
Wrapping it up
The above principles are guidelines that help to make the HR Department come up with an effective human capital strategy. Plans when built from the ground up must take into consideration three key elements. These three which can also be termed as the deciding factors, are efficiency, effectiveness and impact. A human capital plan when estimated and researched thoroughly with these three elements will be much reliable.All in all, for the creation of an effective human capital strategy, there has to be the above principles tied together and run in order to see their potency.
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