Human Capital is often one of the most important assets within a commercial organisation and Human Capital Management (HCM) is the way you manage that asset.
To us at ATSI, human capital is the measurement of the competencies, abilities, experience, potential, commitment, and capacity of your people.
The clinical-sounding 'Human Capital Management' (HCM) is in fact not clinical at all. It’s not about describing people as an economic unit. In fact, it’s a way of valuing the benefit your people bring to your organisation, and highlighting how effectively your business invests in its human capital.
Did you know?
The value of human capital, while important to businesses, starts with the individual.
If you study, or expand your experience as an individual, you’re increasing the value of your human capital. This also increases your human capital value for your employer. Commercial organizations want to protect their human capital and increase value because this, in turn, contributes to the wealth and success of their overall business.
HR and Human Capital
How to start boosting the value of your team’s human capital? Start with HR processes. ATSI’s study shows that actions like resourcing and recruiting people with the right skills and the greatest potential are excellent platforms for boosting the human capital inherent in your organisation. Performance management too, ensures that people are committed to the organisation, focused on the right business priorities and is displaying the right competencies and behaviors.
Human capital is an intangible asset, in the same way as brand value; working practices or customer relationships are intangible, but they still add intrinsic value to your organisation. The difference is that the value of human capital is both measurable and tangible when it comes to profit and loss.
ATSI is taking up the human capital challenge on behalf of our clients, when it comes to managing and maximizing the human capital value in their businesses. Our HR Software, ATSI HR evolution, helps our clients maximize the value of their human capital by providing on-demand HR modules.