Human Capital Essay

714 Words Oct 11th, 2012 3 Pages
Human Capital Every business relies on their personnel. Without a strong workforce a company cannot thrive and be successful in an ever changing corporate environment. Leslie Weatherly maintains that this human capital is a company asset like any other. In the article “Human Capital – The Elusive Asset” Weatherly presents a definition of human capital and strategies for measuring the actual value of human capital assets and the ROI it provides to the company’s bottom line. If human capital is seen as the collective sum of the attributes, life experience, knowledge, inventiveness, energy and enthusiasm that people invest in their work (Weatherly) how can this be possibly be measured and put on a balance sheet as an asset? …show more content…
First and foremost the focus needs to identify the mission of the organization and the core values by which the company describes itself. Only by recognizing the key purpose can a business develop the management strategy that supports the core and works toward full alignment. Managing human capital plays an integral role in any overall strategic alignment plan. Weatherly outlines five strategies for optimizing the ROI of a company’s human capital and each can be easily implemented as part of an ongoing process of measuring and developing human capital and its value to the company. Within my own company the idea of career pathing would be an effective way to plan for expected growth. I work in accounting and do HR for a small pet supplies chain and we plan on opening 2-3 new locations within the next six months. In anticipation we have been restructuring the management staff. The most worrisome part of the current method is there is no formal management training program with structured competency measures that can predict how successful a particular associate will be. While we do have formal evaluation criteria for the mangers there has been no plan to use this as a way of designing a training program in anticipation of this growth. The associates also have no clear path to management other than being recognized as an exceptional employee. Rather than just being given more responsibility there needs to be a set of steps an

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