11.08.2022

Human capital model - invest in your employee!

In the age of widespread access to the Internet, the job market seems unlimited. Unfortunately, the wide range of people ready to take a job does not at all reduce the demand of companies for specialists. One of the biggest challenges of today's recruiters is to find a person who will match the job profile as closely as possible. Every good manager knows that the skills of a team increase the value of a company and are a source of competitive advantage.

What is the human capital model based on?

To understand the essence of the model, it is necessary to start by clarifying what is meant by the term "human capital." Although there is no single concrete definition, it can be said with certainty that human capital is called a set of qualities (such as intelligence, trustworthiness, commitment), abilities (for example, imagination, ability to draw conclusions, inclination to innovate) and motivation and knowledge (that is, the willingness to use knowledge in teamwork to achieve a goal).

So what is the human capital model? This is what we call the management approach oriented toward the employee as a lifelong learner being with a strong need for self-actualization. For this reason, it is always worth investing in him or her and striving for long-term cooperation. Employees are seen as an organization's most valuable capital.

Benefits of the human capital model

A company that decides to introduce such a model gains a team of very loyal employees who are always committed to the assigned tasks. In addition, it minimizes the risk of unhealthy competition, which can effectively spoil the atmosphere at work. Often more than work experience, specific character traits and behavior are valued. For this reason, young people who are just beginning their careers are eagerly hired. They do not have bad habits, which makes the apprenticeship of a new employee faster, more efficient and in line with the needs of the company.

The employee gains access to courses, training or workshops aimed at improving skills. The company cares about the well-being of the team, so it supports the development of employees' individual passions. Layoffs are avoided. One of the main features of this model is the focus on long-term cooperation. In the event of difficulties in carrying out assigned tasks, help and support or a possible change of position is offered. An extensive package of incentive systems is also not forgotten, so as to further encourage the employee to improve his efficiency.

Does the human capital model have any drawbacks?

Unfortunately, the model is not without its drawbacks. The company's personnel policy generates large costs, due to the need to invest in employee training. In addition to the financial outlay, it requires patience, as it is a lengthy process. In addition, very good team relations can discourage employees from competing with each other. This lowers their productivity, and as a result, the quality of the company's services decreases.[5] Moreover, internal recruitment is often practiced, which, while cheap for the company, limits the flow of fresh new ideas and proposals from new hires.

Work in a company that uses a human capital model

As already mentioned, you don't need to have work experience to confidently apply to a company with such a personnel policy. So what do you need? You should be an ambitious, curious person. Undeniably, the basis is the desire to constantly develop your talents and expand your knowledge. No less important is the ability to work in a team and developed interpersonal skills. As you can see, these are requirements that you do not need a previous job to acquire. Once you pass the recruitment process, a close-knit team of employees and a number of courses and trips - both team-building and training - await you. You will be given the opportunity to make decisions on your own, often important and binding for the company. The human capital model also involves promotion through internal recruitment.

Intangible assets such as knowledge and employee involvement, although they cannot be valued in monetary units, are essential for a company to function well. Many well-known and respected companies realize the potential that is in people. One of them is ConQuest Consulting, which recognizes and appreciates in its employees the creativity, ambition and courage to take on challenges. A newly hired person, from the first days, is involved in the life of the company and feels a part of it. This feeling is built, among other things, by assigning tasks that challenge the team and are of real value to the client.

Do you believe that your employees are the most valuable asset in a company? Are you ready to grow your company by investing in their development and education? Or do you already have some experience in this topic? If not, take advantage of outsourcing A professional to support the operation of your business!

 

Kinga Jachorska

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