Saturday, February 13, 2021

6 HR Pillars for Developing a Human Capital Strategy

Here, we will discuss 6 HR pillars every organization should be aware of when developing a strategic HR framework.

HR Pillars

Strategic Human Capital Management (HCM)

Human Capital Management (HCM) is a set of practices that cover workforce acquisition, workforce management, and workforce optimization and that contribute to the overall productivity of an organization.


Human Capital Management helps increase employee satisfaction, design better recruitment and selection processes, develop employee engagement, improve retention rates and return on investment (ROI), manage organizational communications, and create an effective corporate image.


Strategic human capital management is a people-centered approach to human resources that unifies a diverse set of HR processes to act as one - from recruitment, selection, training, development, and performance management to payroll and benefits, to employee exit management and off-boarding.

A human capital management strategy identifies human resources and their capabilities to achieve organizational goals.


The human capital strategy is based on developing strategies and action plans to meet the organizational objectives and is supported by talent management systems.

With the right HCM strategies, an organization can benefit from the most efficient and cost-effective employee management processes.


6 Pillars of a Successful HR Strategy

For human capital management to be effective, it is necessary to focus on providing the work team with specific skills as the case may be.

Here are 6 HR pillars every organization should be aware of when developing a human capital strategy.


1. Legal requirements

One of the fundamental pillars in the management of human capital is the proper management and application of labor laws.

The organization must follow and fulfill all legal requirements to ensure that it protects the business and the employee.

Being governed by the provisions established by law will help maintain an adequate and linear relationship with employees.

 

2. Employee engagement

Employee engagement is a method in the workplace designed to improve employee feelings and their emotional attachment to their job duties, fellow employees, and company culture.

The more satisfied employees are, the greater their commitment to the company, their sense of responsibility, and their discretionary efforts at work.

Another of the fundamental pillars in the management of human capital is precisely to generate that empathy with the work team, which is achieved with actions such as:

  • Incorporate contests and competitions for prizes.
  • Promote performance recognition incentives.
  • Reinforce positive attitudes.
  • And listen to employees to help them solve problems.

 

3. Career development programs

Career development programs are designed to retain and promote human assets, gain personal insights into their strengths and development needs and navigate organizational ladders.

Investing in people is a fundamental task that every company must always take into account.

The professional development plan for team members through training programs and career plans helps to keep employees involved and committed to the work while progressing personally and professionally.

Some ways to create training programs include:

  • The rotation of positions within the company.
  • Internal and external training.
  • And the strengthening of internal communications.


4. Corporate image

Corporate image is the way in which a firm, corporation, or business enterprise presents itself to the public. Maintaining a strong and positive corporate image is important to your strategic human resource planning.

The Human Resources team of an organization is the main institutional actor that must promote and defend the image of the company.

Part of what makes Human Capital Management effective is to constantly reinforce the vision, mission and values of the institution.

In this sense, it is necessary to put your best effort into how to reflect the objectives of the brand, and in these times of digital changes, focus on reflecting the culture of the company through social networks and branding campaigns.

 

5. Performance Management System

The performance management system enables human resource managers to track and monitor the performance of employees, departments, and the organization in general.

An efficient formula to measure the quality of Human Capital Management that a company applies is the use of HR software that helps to process all employee data in a comprehensive manner, through a single platform.

This type of software that can be easily installed can be used to:

  • Complete job application forms.
  • Recruitment efforts and follow-up of potential candidates.
  • Digital archive of job profiles, performance history, and evaluation program.
  • Digital system for calculating payroll, tax discount, and labor benefits.
  • Easily accessible internal newsletter with the programming of events of interest to employees.

 

6. Employee exit management

Employee exit management or off-boarding is the process that describes the formal separation between an employee and the company through termination, resignation, or retirement.

When an employee resigns, retires, or is terminated, the paperwork and formalities associated with the employee's exit must go through a systematic process.

Offboarding processes may include:

  • Deactivating access rights and passwords.
  • Transferring that employee’s job responsibilities.
  • Conducting exit interviews to collect feedback.

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