There are these four human capital drivers that will have the most significant influence on organization performance. They Constitute:
Learning & Innovation
These drivers are closely interrelated and the inability to excel and compete in any of these drivers will result in failure in all of them. Effective leadership is essential to gain full engagement of employees. Engagement is essential if talent is to be attracted and retained. Learning and skills development will contribute to the development of innovatory breakthrough s to produce essential competitive results.
Leadership driver remains at the op of human capital agenda. In this tig,htened global business environment, demand for enhanced leadership skills is even greater. Leadership has been defined in various ways but its essentially the ability to influence people to work effectively towards the achievement of organization’s goals. Leadership in today’s business environment is increasingly seen as a shared responsibility rather than a domain of an individual. As per PWC report, if leadership of an organization is effective then its comparative positioning against its competitors would be superior.
Employers over recent years have shown increasing interest in engagement of their workforces. Research has shown a link between highly engaged employees and the bottom line results. There is also a close relationship between employee engagement and customer satisfaction.
Managing talent effectively is a competitive necessity. Filling critical roles with competent and committed people at the right time is a major business requirement. It provides a performance edge that is important for sustainable growth. The War for Talent has gained significant momentum.
All the above four drivers are critical to human capital’s impact on an organization’s performance. It is possible that different approaches may be needed ; Identification of ‘pivotal employees’ in talent management, the concept of shared leadership, identifying more focused points of engagement for employees and building innovation requirements into all employee roles.