Investing in Human Capital
In today’s world, it is easy for companies to be pulled in many different investment directions. But what we have to ask ourselves is which investment is most wise to make in order to get ahead in this highly-competitive “dog-eat-dog” business environment. Should we invest in assets such as land and equipment? Or is it about investing in charitable organizations and flaunting your support by giving generously. Most would say that in order to see growth in your future, you should take the route of investing heavily in what you own- what you call yours. This may include purchasing more land for development, or investing in the latest technological advancements. Although these types of investments may make a business feel as though they are investing in ‘themselves”, that is exactly what they are doing-investing purely in a select part of themselves. One investment move that is highly important and often overlooked by many companies is the importance of investing in a company’s largest assets -their people!
Investing in human capital is extremely important in order for a business to thrive in today’s marketplace, and also for economic improvement. Let’s take a moment to think about this decision. If you choose to invest in associates by buying them that new, comfortable office desk and chair, how long will their productivity increase? Chances are only until those wheels start to ware and they set their sights on the latest and greatest office desk; then that increase in productivity and appreciation will start to falter. So what exactly is involved in investing in human capital? Providing opportunities for growth and advancement to associates through education and improvement programs. Investing in human capital is investing in the skills and capabilities of your human assets- whether that consists of front-line staff, sales representatives, managers, supervisors or any associate; organization-wide.
The advantages of investing in human capital not only include increased associate productivity, but also increased loyalty. If associates feel that they are worthy of a company’s investment funds, they will feel an increase in motivation to bring success to their employer. We all love it when a boss or manager praises us for our actions. Take that feeling and think how that translates to an associate who was just given that training, skills, or access to the information that helps them not only improve their ability to perform their job, but it improves who they are: skills that apply to them both personally and professionally. Associate participation in continuous skills development will act as a catapult toward improved sales, productivity, better business, competitive edge over competition and ultimately bottom-line profits.
Many companies are first to say that they are heavily invested in their human assets, yet very few have been known to “walk the walk” in that direction. The term “capital” does not maintain a given value. It is something that will gain and lose its value, depending on the amount of investment made. These “people” that we are investing in are true assets that have potential to increase in value. They do not depreciate, and are not easily written-off at the end of the year. They are primary assets which should be appreciated, managed and developed as true assets, and not liabilities. At the end of the day, those investments will bring out the most committed, talented people within the organization. It is those individuals who will bring a business to true success.
As part of their long-term strategy, every company should avoid cutting the cord on their training budget. Investment in people will prove to be just as smart as investments in other assets- if not wiser. The most important aspects of a company are great products, great service, great relationships and a solid reputation. Without great people, none of these can exist.
Do you agree that your organization should start investing in YOUR most valuable assets- your people? We can help you get started as early as today. Simply send us a quick inquiry, and we will work together with you to identify which areas your organization could use the most improvement in, and get you well on your way to building a team of peak performers.
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