Thursday, August 7, 2008

Key trends in human capital- Perspective 2008

Maximizing the value of organizational resources has never been more challenging as in this phase of turbulent world economy. Evaluation of human capital policies and processes should be directly related to the business performance and financial obejctives of the organization. This is the only way people will be given due recognition and rewards that their efforts deserve changing HR function from "resource Absoring" to " Value Adding " business investment.

There are these four human capital drivers that will have the most significant influence on organization performance. They Constitute:

Talent management
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.

The ability of an organization to innovate remains one of the major contributors to its continued sustainable economic performance. The ability of an organization to produce the innovation essential to remain competitive depends on the range of other actions its undertaking including its leadership development, its talent bank, engagement of employees, plus the infrastructure it has in place for exploring new customer offerings.

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.

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