How to make the most of human capital to succeed in business
Here, Trevor McClintock, change agent and entrepreneur, talks about the importance of recognising and using the power of human capital to transform your business…
When an entrepreneur understands the value of human capital, they will succeed in business. Your people are your single greatest asset.
What is human capital?
Human capital is made up of the collective skills, knowledge and other assets of people that can be used to create economic value for the company.
It’s difficult to get your workforce exactly right. But if you choose people who are aligned with your company values then you shouldn’t go far wrong.
How to source human capital
At interview stage, McClintock recommends testing people in different ways to ensure they tick all the boxes for your company’s needs. It is also important to ensure your team works well together and gets along.
Hold regular team building exercises to strengthen bonds within the team and maximise cohesion.
If problems do occur it’s vital to face them head on to nip in the bud any negative behaviour early on. Make sure your door is always open to your team, this builds a comradely atmosphere and helps to boosts morale.
How to make the most of human capital to achieve business success
McClintock recommends you strategically plan everyone’s time using core values, objectives and strategies to make the most of your human capital.
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His top tips are to:
- Ensure all departments input in to your company’s strategy and have regular catch up meetings to make sure everyone is on the same page. The leaders of each department should act as the eyes and ears of the company director to identify how individual employees are progressing in line with personal goals and company targets
- Empower your employees and improve accountability throughout the workforce by fostering an environment of trust throughout all levels of the company.
- Be visible. Leading from the front is vital in inspiring the people you work with and creating a happy workplace where people thrive.
McClintock says it is essential to equip your team with the ability to educate themselves further in their respective fields. Continued professional development, or day release university level courses, can be a good way to further your staff’s personal development thus benefitting both themselves and the company.
It may seem like a big financial investment for a company to make but it pays dividends in broadening the perspectives of your workforce and the sharing of new ideas. Education will ensure your employees are well-equipped to deal with new challenges and it will also ensure they stay ahead of the curve.
Educating your workforce is also a way to motivate your staff. Staff need regular check-ins with their management to stay motivated and dedicated to the growth of the company. By offering a clear progression plan for staff to move up to the next role, you will improve staff retention rates and foster a more focused atmosphere.
Human capital can only succeed if you have a vision for your business
Not only must your vision be realistic it’s paramount that your employees understand, buy in to, and work towards the company’s aims.
The first step is to write down your vision or mission statement. Being clear from the get-go about what you want to achieve and how you will harness the human capital of your organisation will ensure you’re all working towards the same end. It may even help you get there quicker!
Employing realistic tactics is key to achieving your vision, understanding that sometimes you should take baby steps. Rome wasn’t built in a day and nurturing your team to unlock their talents and enthusiasm will serve you well in the long run.
And finally, McClintock emphasises the importance of setting achievable goals and reviewing your progress.
Being honest about advancement towards your vision and being able to modify goals and approaches to achieving them will boost morale amongst your team and cultivate a can-do attitude.
Trevor McClintock is a successful entrepreneur and specialist in re-organisation and business development strategies. He supports existing businesses and provides advice to companies seeking financial investment to take their next development step. Find out more here.