The most important asset a company can possess is their human capital. Annual reports of many organizations in North America, Europe and Asia show that their human capital and intellectual property are their most important assets. In service organizations, it often represents 70 percent to 80 percent of the business cost (Lawler III & Bourdreau, 2012). Once you add in the costs of training and other human resource management activities and you will find that the human resource function has responsibility for a very large portion of total expenditures and that portion is growing. However, the majority of companies do not put enough emphasis into ensuring they have the right programs, practices and policies in place to protect and fully utilize this important asset. There is broad agreement that a strategic approach to human resource management involves designing and implementing a set of internally consistent policies and practices that ensure a business’s human capital contributes to the achievement of its business objectives (Huselid, et. al, 1997). It is often claimed that human resources professionals do not have a “seat at the table.” What this is stating is that human resources departments are not seen as a strategic partner. And even though they are the driver of the greatest asset of the company, they are more of a paper pusher or a police officer. More than ever, the effectiveness of an organization depends on its ability to address talent management issues such as knowledge management, change management and capability building (Lawler III & Boudreau, 2012). Attention to nonfinancial outcomes and sustainability needs to be increased. In high performing companies, leaders rely on data-driven practices and the organization’s business strategies. This allows them to make data-based decisions about human capital management and to engage in discussions based on business strategy and data. In the book “Beyond HR: The New Science of Human Capital” authors Bourdreau and Ramstad tell us that there is an essential evolution that requires changes in the way companies use the perspective of talent and organization to form their strategies, the way business leaders are held accountable for their decisions about the talent and resources under their control and the way human resource professionals teach principles about optimizing talent and organization (page 4). As the face of business continues to change due to economic crisis and globalization, organizations must focus on ways to remain competitive and bring in top talent. Measurements need to be utilized to ensure that the right people are in the right jobs. People are asked to do more with less so it is imperative that management give their human capital processes the attention it needs. Training and development must be implemented to continue to grow the talent the organization already has and allow them to remain current on new technologies and trends. The organization must have a plan in place to maintain top talent in the most critical positions. All of these are part of a strong human capital strategy and imperative to a strongly performing organization. Talent Acquisition
Talent acquisition can be defined as a strategic approach to identifying, attracting and onboarding talent to efficiently and effectively meet business needs. Many times the term recruitment is incorrectly substituted for talent acquisition. Recruitment includes sourcing, screening, interviewing, selecting and hiring. Actual talent acquisition goes much further than that. There is planning and strategy involved. This helps ensure alignment with the business and examines the workforce plans. It also includes employment branding. Similar to branding in marketing, you need to brand your company for employment. Branding helps attract quality candidates and helps show what it is really like to work for the organization. Key to any successful program is the...
Cited: Boudreau, J. W., & Ramstad, P. M. (2007). Beyond HR: The New Science of Human Capital. Boston, MA: Harvard Business School Press.
Erickson, R., Ph.D. (2012, February 7). Recruitment is NOT Talent Acquisition. Retrieved February 8, 2014, from Bersin by Deloitte website: http://www.bersin.com/blog/post.aspx?id=c6dc5fbb-2318-44e0-b25b-33244d3a9d0a
Grossman, R. J. (2011, June). Rough Road to Succession. HR Magazine, 47-51.
Huselid, M. A., Jackson, S. E., & Schuler, R. S. (1997). Technical and Strategic Human Resource Management Effectiveness as Determinants of Firm Performance. Academy of Management Journal, 40(1), 171-188.
Lawler, E. E., III, & Bourdreau, J. W. (2012, August 1). Creating an Effective Human Capital Strategy. HR Magazine, 57(8).
Weyland, T. (2010). 10 Principles for Building an Effective Human Capital Plan [White paper]. Retrieved February 8, 2014, from TriNet website: http://saviigroup.com/wp-content/uploads/2011/10/TriNet_WP_10_Principles_HC_plan.pdf
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