Strategies and Plans for the Human Capital elements
Formulating a Strategy and Plan for each of the seven elements of a Human Capital
The last couple of weeks we have looked at the importance of integrating the Human Capital elements and the conflicts and costs of them not being integrated. This week we will look at the importance of having a fully formulated, documented and measureable strategy and plan. The strategy and plan must be implemented in a way that will maximize the chance of success.
As I stated a couple of weeks ago: “This is no small feat given that all of the above must also be done with an eye to the business plan, company culture, ownership philosophies and characteristics of target employees. The strategies and plans must be custom built for your company.”
Hypothetically, you could have two small plumbing companies that are targeting the same customers with very similar business models. However, the two owners have very different values and personal philosophes which would lead to very different cultures and therefore very different strategies and plans. For instance, the candidates that each company would be looking for would be very different given the values and cultural differences. The manner in which the candidates would be hired, trained, deployed, engaged and evaluated would be very different.
I am sure that each of you could look back at your career and see a company that you “did not fit in” while other companies you naturally felt engaged. The issue being that by formulating these strategies and plans would allow a company to increase the chances of attracting and selecting those employees who fit in. The cost of recruiting and selecting would go down. Employee retention would go up and therefore the cost of turnover would drop.
How does a business owner build these custom strategies and plans? That is for next week.
Clark Ingram, MBA, SPHR, CEBS, CPCU is the principal of People Profits which is a financially oriented Human Capital Strategy and Planning firm based in the OKC metro area. www.PeopleProfits.com. ©2012 People Profits, LLC