The elusive silver bullet

I commonly come in contact with companies that spend thousands of dollars annually on internet technology (IT) innovations and solutions. They make such tremendous effort because they want to solve workplace problems. They strive to make the workplace a more unified environment.

Every organisation is after that elusive silver bullet to solve workplace issues. It seems likely though that many organisations are looking at the wrong direction.

Is I.T really the elusive silver bullet?

Increasingly complex technological infrastructure has become the norm within most modern organisations. Businesses are relying heavily on IT systems to deliver successful organisational outcomes. However, economic, geographic and cultural factors have rocked the business world in recent times, forcing corporations to re-acknowledge the inherent value of their human capital.

Sadly, leaders are now uncovering untold levels of employee disengagement, collateral damage from an increasingly computerised world.

With the exponential value gained through an engaged workforce, Hubb can help you turn your organisation’s largest expense into your most profitable asset.

Human Capital defined*

Dave is a human resource specialist for a smartphone company. His job is to find and cultivate human capital. Capital is a type of asset that allows a business to make more money and furthers a company’s goals. Examples of capital include plant, tools, and equipment. Human capital is the sum total of a person’s knowledge and skills that the company can use to further its goals. For example, Dave’s company needs people with knowledge and skills in engineering, computer software design, manufacturing, finance, law, accounting and management, just to name a few.

Rendered concept of a Human Capital Diagram

Importance of Human Capital

Until we develop artificial intelligence, we pretty much need human capital to accomplish anything in the world today. In fact, it takes human capital to create some other forms of capital. While a machine may eliminate the need to have hundreds of production workers make stuff, it still took human capital to design and build the machine. And as we move deeper and deeper into a knowledge-based economy that depends on information, knowledge and high-level skills, human capital will become increasingly important. Dave’s smartphone company is an example of a knowledge-based business where information, data and knowledge are paramount to success.

Human Capital as an expense

Human capital is a given large expense to most organisations. Yet, as the need to attract and retain the best and the brightest of talents intensifies – organisations are challenged to do more.

What determines an organisation’s success is the knowledge, motivation and engagement your people possess – not on how powerful your computers are. Things like technology, processes, and systems are simply tools utilised by your employees to deliver performance.

People, your most valuable asset

So, your employees are the most important asset. They may represent the major expense to your business yet if we require the human capital to be listed on the balance sheet as an asset and, not just a liability, we could begin to really appreciate its value to the organisation.

An organisation that recognises the inherent and crucial value of their employees as the key to workplace harmony are miles ahead VS those that fail to recognise this. As a result, they even try to ‘Band-Aid‘ problems with other resources such as technology.

Harvard says

According to a recent Harvard Business Publishing Survey of global professionals, only 32 percent of global leaders are confident their organisation has the necessary leadership talent and skills to achieve their strategic goals.

The most important asset at your company isn’t something you can put your hands on. It isn’t equipment or the physical plant, and it isn’t data, technology, or intellectual property. The most valuable part of your company is the people—the human capital—and any plans to move your business forward have to start there.

Yet today’s business leaders are often running a full-time sprint just to keep up with the day-to-day demands of business. This means, human capital—the single most important asset a company needs to take the next step in growth and innovation—is often under used, or under developed.**

Stay ahead

Leading organisations develop and nurture their staff. This makes all the difference and contributes to the success of their organisation. The greater the satisfaction of your employees, the more likely they’ll be to follow your lead and succeed. Smart organisations understand that their main objective is to enhance the performance of their employees. In a knowledge-heavy market, your employees are the engine that keeps your organisation growing, developing and improving.

A thoughtful workplace design, based on proven strategies, can be a powerful tool for supporting employee performance. The collateral benefit is what typically supports productivity and enhances employee health and wellness.

Be an employer that demonstrates a concern for your employees’, including the physical space they work in. Create a strong culture that can help you attract and retain the best and brightest personnel.

Without employees, organisations cannot achieve goals, no matter how great the technology infrastructure is. Hence, harness the power of your staff and your propensity for success rises significantly.

*References:

Study.com, Harvard Business Publishing Survey