As a business owner or entrepreneur that has employees, then without a doubt, you at least have a functioning knowledge of human management and what role it plays in influencing your bottom line.
Several studies conducted have successively confirmed that human capital actually account for more than 60% of the regular costs of running an establishment properly. Yet, considering how influential this variable can be, many business owners still don’t give it the level of attention that it actually demands.
To start with, what exactly is human capital?
In concise and elementary terms, this is the summary evaluation of the perceived financial and economic value that an employee provides a company. This economic value is adequately gauged through the skills, the basic and/or advanced competencies and the knowledge base of the employee.
So, why should you take the time to look into the human capital of your company?
What do you really stand to gain from investing in the human capital of your employees?
Let’s find out quickly.
Ensure your Company Growth Through Customer Satisfaction.
As an employer, it might serve you well to note and act guided by the fact that the results your employees provide is largely dependent on their state of mind.
Happy employees deliver good work and have high morale. In the same vein, sad employees tend to deliver under expectation.
Foster Employee Engagement
Can you imagine doing a job you don’t really like or have a passion for very well? If your answer to that question is a, “No”, then you now understand how important it is for your employees to be fully involved and engaged in what they’re doing.
Done simply assume, take the plains to find out what captures their attention in your organization and encourage your employees to pursue growth in that area. This is certain to also lead to the growth of your business. It’s the definition of a win-win all around.