Importance of Human Capital Management

Thanks to a revolution in the global workforce, greater emphasis has been placed on flexible working, with age discrimination in the UK outlawed, and global migration changing the landscape of skills available in the employment market. The labour force has also changed dramatically as the western economy has matured.

Human capital has never been more critical to businesses gaining competitive advantage in their chosen market, because of these changes.

Your Workplace

As much as 80% of your company’s value or worth is tied to your people and the way they perform.

Access to financial capital (money) is no longer the single greatest source of competitive advantage, because competitive advantage is now derived from know-how, from people’s abilities, skills and competence.

Having the right human capital in your organisation, with appropriate skills, knowledge, portfolio of experience and capability provides the edge that is not easily replicated by a competitor.

Your Team

Employees need to deliver value in new and different ways, and the type of person your business depends on may have changed. How many school leavers or university graduates believe they will leave full-time education and enter ‘a job for life’?

It’s no longer prudent to assume that individuals will want to invest their own human capital in your business. To engage and retain the talent you have recruited, it has become crucial to introduce elements other than traditional pay and security.

46% of Chief Executives say that finding good people and keeping them is their single biggest worry and most fear their employees are ill-equipped in terms of skills.

The challenge for your business is to understand the exact blend or profile of person you need in your organisation to create financial success. The next challenge is to find, recruit and retain the human capital asset you have acquired.

Here at Ceridian, we understand that the human capital asset is certainly one of the chief sources of competitive advantage. Our HR software, HRevolution, combines Human Capital Management modules with your Reward Framework, helping you maximise the value of your people.

Contact us for more details.

What is the Human Capital Challenge?

Find out more.