• People Management
  • Human Capital Management

Key Components of Strategic Human Capital Plan

Employees - their knowledge, experience, skills, innovative ideas, concepts are all valued possessions within an organization. An organization must understand its employees well to expect the best from them. Human capital management refers to developing strategies to hire, manage, train, develop and retain top performing employees.

Human Capital management includes the following:

  • Recruiting the best available talent
  • Career development Plans for employees
  • Coaching and mentoring employees
  • Motivate employees to deliver their level best
  • Developing performance management strategies

Strategic human capital management refers to alignment of human capital strategies with the goals, objectives, mission of an organization through extensive planning, analysis and management of human capital plans .

Human Capital Planning helps an organization to design human capital policies, strategies, programs to increase efficiency of employees and help them accomplish goals and objectives of organization. Implementation of human capital plan helps human resource professionals to hire the right candidate, train him, upgrade his/her skills, manage him/her and also retain an employee.

Let us go through key components of a strategic human capital plan:

Clarity in Direction

  • Clarity in human capital goals
  • Strategies/Policies to accomplish already defined goals and objectives
  • A foolproof implementation Plan
  • An accountability system

Let us go through each of the component in detail:

This component involves the complete understanding of an organization. It is essential to understand the budgetary constraints, vision of an organization, requirements and expectations of stakeholders, customers, senior management, needs of current workforce to achieve a clear strategic direction.

Discuss and collect data from stakeholders, customers, employees to understand their needs and expectations. It will help you define the vision of an organization and its workforce. Try to analyze the current state of employees and where they would exactly like to see themselves and organization two years down the line. Such an analysis will help you understand the gaps in the system.

Clarity in Human Capital Goals

Understanding the gap between current and desired state helps in developing human capital goals which would not only increase the overall efficiency of employees but also make them feel attached towards the organization.

Set human capital goals such as:

  • Only the best talent should be hired.
  • Developing realistic induction programs for new employees.
  • Continuously develop skills of workforce in line with the requirements.
  • Retaining hard working and dedicated employees

Strategies/Policies to Accomplish Already Defined Goals and Objectives

The next step once goals and objectives are set is to design strategies and policies to achieve the same. Human resource professionals should design long term plans to ensure employees are satisfied with their jobs and deliver their level best .

Delegate responsibilities to employees as per their skills, educational qualification, expertise and interest areas. Assign a team leader. Team Managers should take proper feedbacks from team members to monitor their performances. Know what your team members are upto? Managers must interact with their team members on a regular basis to understand their expectations from the system and also to keep a track on their growth in the organization.

Implementation Plan

Implementation Plan includes the actions and steps required to implement human capital plans .

Successful implementation plans include:

  • Allocating a responsible resource for the same
  • Setting a timeframe/deadline for implementing human capital plans
  • Allocating budgets for the same

Accountability System

No process or plan is successful unless and until it is managed well. It is essential to keep a track. Accountability system involves measuring the success and failure of an implemented plan . It also helps you to analyze the loopholes in the plan (if any) and ways to rectify the same.

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Authorship/Referencing - About the Author(s)

The article is Written By “Prachi Juneja” and Reviewed By Management Study Guide Content Team . MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider . To Know more, click on About Us . The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to ManagementStudyGuide.com and the content page url.
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10 Principles for Building an Effective Human Capital Plan

10 Principles for Building an Effective Human Capital Plan

TriNet Team

Almost every business leader will say that people are their most important asset, but few do anything about it. If you are going to take this principle seriously then human capital planning is crucial.

The Human Capital Plan is an important tool that organizations use to drive focused actions that can ensure goal achievement and business success. It allows organizations to assess, plan for, and respond proactively to its human capital challenges and needs. It helps shape the organization by building a plan to develop the workforce and practices needed to meet an organization’s vision, mission, and goals. Human capital challenges such as having capable leaders, building workforce skills, driving high performance, and ensuring retention of top talent can be addressed through effective human capital planning. The Human Capital (HC) Plan will establish a framework of policies, practices, and actions that guide your efforts in meeting these workforce needs.

You may have heard these strategies referred to differently, such as human capital management, strategic human capital management or talent management. While there may be multiple ways to phrase the concept, the principles are essentially the same. All of these refer to building a firm foundation for and with your employees, enabling them to drive your organization’s growth and success.

Human capital management is relevant to businesses of all shapes, sizes, and complexities. Human resource management may not initially be part of a small business’s focus, as companies can start off as solely managed and operated by one individual. As organizations grow and develop, its human capital needs and strategies will need to evolve alongside any business strategy changes

Here are 10 principles to follow in order to build an effective human capital plan for your organization: 

1. Human capital issues can have a big impact on business

Recognize how significantly human capital issues can affect your business. Without acceptance of its importance in your organization’s framework, all plans regarding your workforce will fall flat or at least be deprioritized. Realizing how your human capital decisions affect your bottom line is an important step before drafting the plan.

Examples of Human Capital Issues Impacting Business

One company we work with built a performance management process that allowed them to achieve their goals more quickly. It was a pre-revenue start-up business. This meant they were able to gain an advantage by being first to market and also accelerate their revenue generation.

Another client company under 50 employees was growing rapidly in size and was a government contractor. However, the company did not know it needed to have an affirmative action plan if it wanted to go after larger government contracts in the future. Putting that in place allowed them to continue to build their government business. This was a human capital initiative they had to implement before continuing to grow the business. 

2. Tie human capital plans to business outcomes

Human capital matters must not be viewed as tied to a cost center, but as investments with some return expected.

From a human capital point of view, you can do one of two things:

  • Help increase revenue per employee, or
  • Optimize or minimize the cost per employee

If you go for the first option, then take into account all the things that you offer which are unique to your organization. Offering differentiated products enables you to dominate a market. And those products or services cannot be offered without the tremendous talents of your workers.

You have to be careful about the second option though. With minimizing, you do not want to bring the cost per employee so low that you then face retention issues. Focus instead on optimizing.

Case Study: Leadership Skills Training Brings Good Results

One of TriNet’s clients had project managers onsite working in teams to serve customers. Because the project managers were not as effective as necessary in regards to managing their people, TriNet worked with them to develop leadership skills via online learning and facilitated development activities with the PM team. The result was an improvement in their leadership and a correlating improvement in customer service. The leaders were more productive and completed more work due to better planning and resource management.

Case Study: Sears Improves Customer Experience with Training

A 1998 Harvard Business Case on Sears showed that the company was able to improve the capability of its customer-facing employees and thus improve the overall customer experience. The result directly affected Sears’s bottom line. Sears measured the staff interactions, the customer feedback and subsequently improved the company’s financial results. 

3. Target your practices to your specific industry and business

Do not adopt best practices just because others are using them. Best practices only work if they are focused on employing targeted human capital actions relevant to your business.

Discovering and emulating other companies’ best practices has been very popular— especially in the last ten years. Unfortunately, the best practices of another company are often irrelevant to your own company. They generally add no value.

It is not until you focus on what you are doing specifically in your business and taking targeted human capital actions relevant only to your situation, that best practices becomes meaningful.

You need to go through a human capital planning process where all practices are tied concretely to your business goals. 

4. Align your actions with best practices

When you put actions in place, make sure all those actions work together and are integrated with one another – otherwise you will have a system that works against itself.

Examples of Contradiction:

  • If you are trying to promote more collaboration within your team but your incentive program is based only on individual actions, you will not achieve your desired goals.
  • If you do quarterly incentive payments, yet you only do a performance review on a semi-annual basis, the system will not work.

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5. Plan ahead to assess results

The objective of the human capital plan is to maximize the value of a company’s investment in people. This means you should think ahead about what you are trying to achieve and what your desired results might look like.

  • Plan for what results you expect. 
  • Determine how you will assess your performance, and what your benchmarks are for success.

Case Study: Healthcare Institution Improves Customer Experience

One of TriNet’s clients was a healthcare institution experiencing significant turnover, much of it unplanned. Because the company did not have an effective performance system, they were paying a lot of severance just to minimize their risk as employees were terminated.

What they were trying to improve was the patient experience. Having patients see different caregivers every time did not help, so reducing turnover could clearly impact the business. Their immediate short-term goal was to understand:

  • Their current turnover rate
  • Turnover costs
  • Severance costs

Once all these factors were analyzed, they put a plan into action and were able to see reduced turnover and reduced severance costs, along with improved scores from their patients based on their patient experience.

Improving the Hiring Process Reduces Turnover

Another example: one TriNet client was experiencing significant turnover in its non- exempt workforce. Research revealed that the executive team needed to improve the hiring process and make better hiring decisions. The company took the following concrete actions:

  • They improved their candidate interview process by letting candidates see what the work environment was actually like
  • They used an assessment tool to assess the candidate’s fit in the organization

TriNet evaluated the cost associated with the company’s turnover. Part of it was overtime cost, recruiting costs, and training costs. TriNet also evaluated the cost of training people to use the assessment tool for future job candidates. At the end of the year, turnover was down and the company saw a return on its investment.

In each of these cases, companies began the project by planning for their expected result—and then determined how to assess whether their actions were successful or not.

6. This work is too important to be left to HR

Many small businesses do not have HR teams or may have less experienced HR managers, but even in regards to larger businesses staffed with complete HR departments, the human capital plan needs to be led by management. It is important to have business leaders involved and participating both in planning and implementation. They have to be willing participants and champions or it will not work.

For many businesses today, one of the largest costs is the people costs – it is a major cost but also a major opportunity. When you involve your company’s business leaders in a human capital plan, help them understand both the business issues involved as well as what needs to be done from a human capital point of view—but then you also have to put measures in place so they are held accountable. Communicate to business leaders that workforce success, operational success and customer success are just as important as making the numbers.

7. It is a process, not just an event

As the human capital plan moves forward, there will be ongoing adjustments needed. Allow for those adjustments to take place.

For example, you may have determined that you need to hire five salespeople to drive new business in an expanded territory. You have determined how this will be done and what the market rate is for their skill sets. But as you go you may need to adjust—maybe you need more than five people after all, or you have to modify the compensation.

Ongoing adjustments are necessary but it is also important to do a formal review of the whole human capital plan periodically. A good time frame is every quarter—long enough to get something substantive done, but not so long that you are far removed from what happened.

8. Don’t do too many things: limit and prioritize

You will need to prioritize your actions based on value and ease of implementation. Ask these two questions:

  • How valuable would this be for the business?
  • How difficult or easy is it to implement?

Logically, you concentrate your initial efforts on those actions that have high value and are easiest to do. The actions that have high value but are more difficult to do will require the most planning and the largest investment—though usually these are the ones that give you the most pay-off. Prioritizing and limiting to a few initiatives is critical.

9. Create a value chain

Create the value chain from the business goal to the individual actions you will take to reach that goal. A few questions to ask:

  • What are the human capital issues that are in the way?
  • What is the capability I need to build to achieve the business goal?

A Hypothetical Case Study: Increase Sales

Let's say your goal is to increase sales in the Northeast by 20% to 5 million dollars. You face issues such as turnover and low productivity in your sales force, as your people confront powerful competitors with more effective sales teams. What is the capability you need to build to reach your business goal? What actions do you need to take?

Some human capital solutions may include hiring more people, implementing a new compensation plan, and revamping the sales training process to reduce the time to productivity.

The result should be that your sales go up, but you can also measure interim actions such as your time to productivity, your turnover, and the strength of your sales pipeline. These interim actions come before your business goal is achieved.

Creating that value chain from the business goal to actions taken means you think about and add value every step of the way. This simple process is flexible enough to encompass more sophisticated business goals and human capital issues.

10. Do the HC planning from the outside in

Remember also that it is always about the customer! You need to think about what you are trying to achieve for the customer. As you come from the outside in, examine the processes and capabilities you will need to have to create the ultimate customer experience.

Some questions you need to ask:

  • What experience do I need to create for the customer?
  • What products or services do I need to have to satisfy the customer?

Think about revenue per employee and cost per employee in the context of what you are trying to achieve for your customer. That should lead to the financial results that you want. It also leads to a differentiation.

The Bottom Line: A Good Plan is Unique

It is much more difficult to copy workforce capability than it is to copy a marketing program or a product. And the reality is, you don’t really want to copy anyone else’s human capital plan.

Rather, you want to build the human capital plan that’s right for your unique situation, business model, and goals. Build your human capital and build the capability of your people. The result is a powerful competitive advantage that cannot be easily replicated in the market place.

The contents of this article have been prepared for educational and information purposes only. The content does not provide legal advice or legal opinions on any specific matters. Transmission of this information is not intended to create, and receipt does not constitute, a lawyer-client relationship between TriNet, the author(s), or the publishers and you. You should not act or refrain from acting on any legal matter based on the content without seeking professional counsel.

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Four Pillars for Developing a Human Capital Strategy

Without an effective human capital strategy, you cannot achieve your overall goals..

You've spent months planning an ambitious multi-year strategy. The conversations within your senior leadership team have been a little messy at times, but clarity is finally emerging. Then comes the uncomfortable question: "What's the people plan that will enable this strategy?"

Crickets chirp, followed by a comment like, "That's for each team to figure out," or "That'll be easy compared with all the work we've had to do to get this far."

For many companies, developing an explicit human capital strategy seems either too obvious or too vague a thing to worry about compared with the hard work of agreeing a business strategy in the first place. Compounding the problem is that many treat it in purely functional terms, such as improving the performance appraisal system. But that's not what's meant by impactful people strategies. Without an effective human capital strategy, you simply cannot achieve your overall goals.

Here's my framework for developing a human capital strategy. It draws on work by  A.G. Lafley, Roger Martin and Jennifer Riel , as well as my own 30-plus years of experience working in various multinationals, including DuPont and Automatic Data Processing. It's built on the following four pillars:

1. What capabilities must be in place?

Every organization has some core capabilities -- the things you're distinctively good at, which form the basis of your competitive advantage. By distinctive, I mean they're difficult for others to replicate, and they work together in ways that are unique. In the process of formulating your business strategy, you should have determined what those are. 

But have you also understood which core  people  capabilities are needed? This is key, since building them might take years. Ask yourself: 

What are the core people capabilities implied by my value chain?

Which capabilities have to be strengthened under my current strategy?

Is it possible to build those capabilities to competitive advantage in the timeframe of my strategy?

If those capabilities represent a significant departure from what I currently have, what's my change management plan?

2. Do I have the right organization?

You want to grow in emerging markets, but you have insufficient people in that part of the world. You want to grow your digital business, but you only have classic marketing profiles. You have lots of managers and executives, but what you really need is more scientific talent for innovation. Sound familiar?

Ensuring you have the right people and that they're properly allocated and organized is essential, not least because labor is often your No. 1 expense. By "organized," I'm talking about much more than fiddling with the organizational chart. Rather:

How well does my organizational model fit with the overall strategy?

Are strategic areas properly resourced from a people point of view?

Is my management overhead as efficient as it needs to be?

Are the core work locations (manufacturing, scientific, administrative, managerial) in the right places, with a good balance between cost and quality of talent?

3. Do I have the right leadership talent?

It's one thing to spot talent shortfalls, quite another to address them, especially at senior management levels. You can't just make a few calls to find out who is and isn't performing. You need to be consistently and analytically assessing the critical roles in your organization, and in particular the capabilities and potential of the incumbents in those roles. 

Having "the right talent, in the right roles, at the right time" is important but not enough. To grow, you must also have a pipeline of future leadership talent. Growing the business by growing your leadership talent, and growing your leadership talent by growing the business, builds the kind of momentum that the management theorist  Jim Collins refers to as "the flywheel effect."

To this end, ask:

What are the critical leadership roles that my strategy hinges on?

Do I have mechanisms to ensure that the strongest talent occupies those roles?

Have I identified the leadership talent with the most potential?

Do I know how to develop that talent for future roles, not just the current ones?

4. Do I have my employees' support? 

When a CEO speaks to Wall Street with a set of messages different from those employees hear, or when managers act in ways inconsistent with the company's stated direction or values, it gets noticed. Everyone needs to be pulling in the same direction. 

Answer these questions with data, not just hunches:

Can all employees articulate the basic tenets of the strategy?

Are they reasonably supportive of where the organization is going?

Do they feel heard?

Are they given opportunities to succeed and grow, regardless of personal background or circumstances?

In answering all these questions, be honest -- with yourself and your teams -- about whether you have really addressed them. You may give more weight to certain aspects over others, but at the very least you must have a point of view on each of them. If not, it's probably time to appoint a special team, which includes your chief HR officer, to work on this agenda. 

While HR is a natural advocate, developing a human capital strategy shouldn't be left solely to them. The entire senior management team must co-create it, support it, own it and monitor its implementation. Otherwise, it will just become another fruitless exercise.

View the original article in IESE Insight  here .

Topics Related to this Article

  • Talent Management

This article originally appeared in IESE Insight .

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Creating an Effective Human Capital Strategy

Measure your progress toward being a strategic HR business partner.

In response, they are utilizing new technologies, changing their organizations' structures, redesigning work, relocating workforces and improving work processes. These changes have significant implications for how their human capital should be managed and how their HR functions should operate.

The annual reports of many corporations in North America, Europe and Asia state that their human capital and intellectual property are their most important assets. In many organizations, compensation is one of the largest costs. In service organizations, it often represents 70 percent to 80 percent of business cost. Adding in the costs of training and other HR management activities, one finds that the HR function often has responsibility for a very large portion of total expenditures–and this portion is growing.

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. The key question is whether HR professionals will rise to the occasion and address them.

If current HR practices don't change, the work of HR professionals could end up being largely administrative. They could merely manage IT-based HR systems and vendors who do most of the HR administrative work. On the other hand, HR professionals could become drivers of organizational effectiveness and business strategy.

To determine what makes HR functions effective and how they are changing, we have repeatedly surveyed senior HR and other executives from more than 200 U.S. corporations as part of a research project funded by the SHRM Foundation. The survey, fielded six times from 1995 to 2010, asks respondents about how HR operates in their organizations and about how effective HR is. The results are generally poor when it comes to making changes that improve the status and responsibilities of HR professionals.

Some of the questions we ask on our surveys are shown here. You can use these as tools to measure your HR department's progress in linking your company's business goals with a sound talent management strategy.

Search for Strategy

In our research, we have found that HR professionals can add value by:

  • Providing administrative support services.
  • Serving as business partners who help to implement business systems and practices.
  • Becoming strategic partners who help corporate leaders develop business strategy.

Despite compelling arguments that talent management is a key strategic issue in most organizations, our research finds that HR executives often are not strategic partners; they are administrators and, on occasion, business partners.

As just one example of the survey data underscoring this conclusion, consider the fact that from 1995 to 2010, there has been no significant change in the way HR professionals say they spend their time. They still spend very little time being strategic partners. Though HR professionals say their roles have changed, our data show that they are guilty of wishful thinking and a selective memory.

All too often, the HR function is largely an administrative one headed by individuals whose roles focus on cost control and administrative activities. Missing almost entirely from the list of HR focuses are such key talent management challenges as improving productivity, increasing quality, facilitating mergers and acquisitions, managing knowledge, implementing change, developing business strategies, and improving the ability of the organization to execute strategies.

Metrics: Just One Part

Since these areas are critical determinants of organizational performance, HR leaders are missing a great opportunity to add value. A strong case can be made that HR needs to develop much better metrics and analytics. Our previous studies have all identified metrics as one of the key characteristics that lead to HR's being a strategic partner in corporations. Managers want measurement systems that enhance their decisions about human capital. Yet HR professionals often focus on delivering HR services. HR departments have become more sophisticated in the measures they use, yet, according to our 2010 data, this has not led to HR leaders being strategic partners or to HR professionals being more effective. Business leaders can now be and sometimes are held accountable for HR measures such as turnover, employee attitudes, bench strength or performance distributions; however, this is not the same as having an effective human capital strategy. The issue is how to use HR measures to make a true strategic difference in an organization's performance. At the Center for Effective Organizations, we have identified four components of a measurement system that drive strategic change and organizational effectiveness: logic, analysis, measures and process. Measures represent only one component of this system.

HR professionals can make strides by studying how practitioners in more-mature decision sciences have evolved their measurement systems. Three anchor points–efficiency, effectiveness and impact–connect decisions about resources such as money and customers to organizational effectiveness, and they can similarly be used to understand HR measurement.

Efficiency  asks, "What resources are used to produce our HR policies and practices?" Typical indicators of efficiency are cost-per-hire and time-to-fill.

Effectiveness  asks, "How do our HR policies and practices affect the talent pools and organization structures to which they are directed?" Effectiveness refers to the effects of HR policies and practices on human capacity and the resulting "aligned actions" of the target talent pools. Effectiveness includes trainees' increased knowledge, better-selected applicants' enhanced qualifications and the performance ratings of those receiving incentives.

Impact  asks, "How do differences in the quality or availability of different talent pools affect strategic success?" This question is a component of talent segmentation, which means understanding the strategically important differences between various groups of employees and potential employees.

Link Strategy and Talent

Most HR measurement systems largely focus on efficiency, though there is some attention paid to effectiveness since they often measure turnover, attitudes and bench strength.

Rarely do HR leaders consider impact, the relative effect of different talent pools on organizational effectiveness. More important, HR measurements are rarely directed specifically to where they are most likely to have the greatest effect–on key talent.

Attention to nonfinancial outcomes and sustainability needs to be increased, and strategic HR can affect these as well. Based on the results of our 2010 survey, it is possible to identify key activities that HR executives in corporations need to engage in to be effective. Most have to do with how business strategies relate to human capital management. Here is how we measured HR activities and what our research tells us about how well HR professionals are creating and defining this vital link:

Assessing the organization's readiness to implement different strategies and supporting implementation of the business strategy are activities done much more frequently by effective HR functions.

High-performing HR departments separate themselves from the rest by the strategies they use and develop with respect to talent and HR management. High-performing HR departments have data-based talent strategies integrated with the business strategy, while low performers do not.

In high-performing HR departments, leaders do not rely on HR best practices or administrative standard operating procedures as the key drivers of how the HR professionals act and the policies they set. Instead, they rely on data-driven practices and the organizations' business strategies. This allows them to make rigorous data-based decisions about human capital management and to engage in discussions with senior executives based on business strategy and data. Not surprisingly, these are the kinds of discussions that lead other executives to have a positive view of HR and to listen to HR recommendations with respect to talent management and HR policies and practices.

It is interesting that the relative degree of involvement in different activities as seen by line managers and HR executives is very similar. Managers agree with HR executives that the major involvement of HR executives is in recruiting and developing talent and other implementation issues involved in strategy.

Although they spend less of their time on administration and give more emphasis to strategic talent management, the most effective HR functions do not neglect basic administration and compliance with rules, laws and regulations. Having quality professional practices and services is a must. But the best HR leaders do not let this work dominate their activities. They are able to combine their attention to basic administration with making important strategic inputs that have a positive impact on the future of the organization. This is obviously not an easy balance to maintain.

Fill in the Gaps

These are many opportunities for HR professionals to improve their status and responsibilities. Most business managers have increased their awareness of the importance of human capital, and of their role in nurturing and deploying it. HR data and scorecards are more available, providing a basis for improved decisions. There is also a great deal that most managers still do not know about talent segmentation, motivation, culture and learning. HR executives likely can see this gap, and it is reflected in their ratings on our surveys. HR executives report that "our business leaders don't know what they don't know" when it comes to sound principles of human capital decisions. It is easy for managers to regard their performance as sufficient, while HR executives who are more familiar with human resource management see that much more could be accomplished.

Our survey results demonstrate the tremendous importance of linking business strategy with talent management–yet we find little indication that HR professionals are doing it. True, HR leaders face a formidable challenge, but they must deal with the human and business issues raised by large-scale strategic change. To meet these challenges, HR must focus on how human capital can add value.

Edward E. Lawler III is distinguished professor of business and director of the Center for Effective Organizations in the Marshall School of Business at the University of Southern California in Los Angeles. John W. Boudreau is professor at the Marshall School and research director at the center. This article is adapted from their book  Effective Human Resource Management  (Stanford University Press, 2012).

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  • Book summary:  Effective Human Resource Management
  • Website:  Center for Effective Organizations

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Human Capital Plan: Definition, Importance & Key Components

Hannah Denby

Hannah Denby

June 15, 2023

human capital plan: definition, importance and key components

Every organization relies on its people, so businesses must introduce systems to manage people resources. And with an average cost of $1,400 to onboard a new employee , organizations should view employees as valuable assets, not just resources.

Human capital planning allows businesses to see beyond the current staffing situation, predict future needs, and implement plans to address these. An effective human capital plan will enable organizations to use the workforce to address future business objectives by ensuring the right people are in the right job roles.

In this article, you can learn how to apply the principles of human capital planning to your business or organization.

What is a human capital plan?

A human capital plan is a type of corporate strategy that considers the future people resources required for an organization to meet its business goals.

Human capital planning involves looking beyond the current human capital state of the business, predicting future requirements and making plans to recruit, develop and retain the best talent for these job roles.

Managers must consider the following business processes when creating a human capital plan:

Hiring new talent

Performance management

Promotions and succession planning

Ending contracts/ offboarding

Tracking time off (e.g. for sickness absence, vacation leave, parental leave)

Managing professional development

Why is a human capital plan important?

A human capital plan is essential to all organizations, regardless of size.

An effective human capital plan helps organizations employ, recruit and retain the talent required for business success.

Organizations should create human capital plans in line with the business strategy. Once stakeholders have identified upcoming business objectives, managers can use this information to identify talent skills gaps in the existing workforce.

After identifying skills gaps , managers can create employee profiles for each proposed vacant role.

When future vacancies are identified, managers can create a talent strategy to help them hire the people for the vacant roles.

Hiring is an essential aspect of human capital planning. However, an effective human capital plan covers more than hiring and recruiting. The human capital plan must also address the existing workforce’s training and performance management needs and how they contribute to business success.

Key components of a human capital plan

human capital plan: definition, importance and key components

1. Workforce planning and forecasting

The first step to creating a human capital plan is understanding how people and resources contribute to the business’s overall goals.

Organizations must start workforce planning and forecasting as soon as the business strategy is agreed upon. Effective human capital planning will help to ensure it recruits the best talent for each vacancy and employs sufficient staff to meet business demand.

For example, if the business intends to open a new site location within the next 12 months, it will need to consider what human capital resources will be required to achieve this goal.

It should also review existing talent within the organization and whether the new site location offers current employees career development or promotion opportunities.

2. Talent acquisition and recruitment

Once the human capital requirements of the business have been identified, organizations must make a plan to recruit people for these vacancies.

This includes setting up hiring guidelines that outline the standard operating process for sourcing and recruiting talent. The hiring guidelines should cover the following:

Reviewing job descriptions for existing roles

Creating job descriptions for new roles

Agreeing on salary scales and compensation

Posting adverts

Sourcing talent using social media

Headhunting

Reviewing applications and resumes

Interviewing and pre-employment screening assessments

Background checks

Checking references

Making an employment offer

Organizations must write hiring guidelines in line with all relevant employment legislation.

3. Employee development

The human capital plan must also consider the development of existing employees. After all, the more training and development that is offered, the more valuable an employee becomes to the organization.

The human capital plan must always be linked to training and performance management. The HR department should work closely with managers to identify training needs within the organization.

HR can also support managers in managing employee performance and create customized training programs to tackle any skills gaps.

Organizations can offer employee development opportunities in a variety of ways, including onsite training programs and seminars, reimbursement of tuition fees at the local college or asking employees to attend relevant business events and conferences.

4. Employee engagement and retention

Once an organization has hired the best talent, it will want to find ways to keep them.

Employee engagement is vital to reducing absenteeism and retaining top talent.

Research by Gallup identified that “engaged employees make a point to show up at work and do more work - highly engaged business units realize an 81% difference in absenteeism and a 14% difference in productivity.

As such, the human capital plan must find strategies to ensure people want to continue working for the organization and minimize the risk of them wanting to seek other job opportunities.

Here is an overview of strategies for employee retention, which can be incorporated into the overall human capital plan:

Prioritizing a positive work-life balance

Organizations should avoid a workforce culture that encourages or rewards employees for being constantly available.

Achieving a healthy work-life balance is vital to job satisfaction . Managers may offer flexible working arrangements to assist with this. Organizations can also consider offering discounts on gym memberships, well-being programs or stress management workshops.

Perks and compensation

The labor market is competitive, so organizations need to offer attractive compensation and rewards packages.

As well as the salary package, organizations should review the paid time off policy, parental leave allowance, health benefits and pension arrangements.

Managers should also consider offering everyday perks such as free drinks and snacks in the workplace, away days or discounts on significant purchases.

Reward and recognition

Feeling appreciated is crucial to the employee/manager relationship, so as part of the human capital plan, organizations must take steps to incentivize, recognize and thank employees for their contribution to business success. This can be achieved in various ways, from emails from the chief operating officer to gift cards and bonuses.

5. Performance measurement

Measuring performance is linked to checking the contribution of human capital to the organization’s strategy. It involves using key performance indicators (KPIs) and HR metrics to identify how employee contributions bring value to the business.

During performance measurement, HR managers and the senior management team consider an employee’s overall job performance, highlight their strengths and weaknesses, provide feedback and agree on future objectives.

The performance measurement process must always be linked to company objectives and goals.

Employee performance can be tracked and measured in several ways, including collating 360-degree feedback , checking performance output, and monitoring the completion of training.

Performance can be tracked and measured in several ways. It should always be linked to the overall company objectives and goals.

Benefits of a Human Capital Plan

Writing a human capital plan offers the following benefits:

Optimizes the hiring process. From advertising to onboarding, an effective human capital plan can help organizations attract, recruit and retain the best candidates. It also allows HR and PR teams to promote the organization as an attractive workplace.

Reduces hiring costs. Sourcing, recruiting and retaining the best talent can be expensive. Organizations can streamline the hiring process and lower overall costs with an effective human capital plan.

Allows the organization to maximize the value of its people resources through training and development and succession planning.

It makes it easier to manage everyday HR tasks, such as identifying skills gaps and setting up training programs.

An effective human capital plan allows organizations to predict turnover and future staffing needs per the overall business strategy.

For example, if an organization plans to expand operations in the next two years, human capital planning will help ensure the right staff are hired in time to cope with the additional demand.

What to consider when implementing a human capital plan

human capital plan: definition, importance and key components

1. Carry out a skills analysis

Checking existing employees’ skills, performance, and output is the first step to effective human capital planning. It allows you to explore what skills and experience exist within the workforce and how they can be utilized to achieve company goals. Aptitude and psychometric tests can be used to assess cognitive and reasoning abilities.

2. Assess soft skills

Checking an employee’s qualifications and experience is essential, but establishing their soft skills is helpful in checking suitability for a job role. Personality tests can be used to assess problem-solving, empathy, emotional intelligence and teamwork skills.

3. Set a training budget

After identifying any skills gaps, plan to address them through training programs and other development initiatives. Offering training and development opportunities play an important role in employee motivation, but it also helps to boost their overall value to the business.

4. Use technology to track and manage talent

Tracking talent is an integral part of the hiring process. With the Neuroworx Applicant Tracking System , you can manage applicants, move candidates through the hiring process and make hiring decisions at the click of a button. It also offers a data-based approach to recruiting, allowing you to find the best talent.

5. Offer a positive employee experience

Showing employees and prospective recruits the possibilities available is another excellent way to boost engagement. You can discuss career paths and training opportunities throughout the hiring process.

Once an employee is hired, this conversation should form part of the performance management cycle , which you can manage seamlessly using the Neuroworx Performance Management tool .

Ready to implement a human capital plan in your organization? Whatever the size of your business, Neuroworx offers a suite of useful solutions to help you get started.

From sourcing applicants and managing performance to boosting employee satisfaction and well-being , get in touch today to learn more about our support and services.

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Strategic human capital management: how to do hr smarter.

April 21, 2020 - minute read

strategic human capital management plan

In the last two decades, there has been a significant shift in HR. Fifteen years ago, when you thought “human resources” you probably thought “W-2” or “401K”. Now, HR encompasses so much more, and it is often referred to as human capital management [i] . Implementing a human capital management strategy can benefit businesses in several ways, allowing for more organization and simplicity of HCM operations.

What is strategic human capital management?

Strategic human capital management (HCM) is a people-focused approach to HR that unites a variety of human resource processes to work as one—from recruiting and onboarding, to payroll and benefits, to workforce and performance management. With the right human capital management strategies, you can benefit from more efficient and cost-effective employee management processes.

The key to strategic HCM is treating your employees like an investment. To do that, you must take into account all parts of the employee life-cycle, from recruitment to retirement. Without taking these into consideration, your human capital management strategies will never be as effective as they otherwise could be.

key components of a strategic human capital plan

Important Components of Human Capital Management Strategies

Human capital management strategies combine integrated technology and streamlined HR processes in the following areas:

  • Recruiting and Applicant Tracking
  • HR Management
  • Benefits Administration
  • Performance & Talent Management
  • Time & Labor

The Value of Implementing Strategic Human Capital Management

  • Differentiate your business . In this increasingly global economy, your organization must find ways to set itself apart from its competition. One big differentiator is how you manage your people—the core of your business.
  • Optimize your workforce . It’s vital to create efficiencies, keep your employees happy, and reduce turnover And less turnover means increased productivity—giving your company the competitive edge it needs to stand out.
  • Connect disjointed practices . Strategic HCM combines point solutions and processes (like payroll, time and attendance, and recruiting and onboarding) to give you one streamlined approach to HR. While best of breed systems can deliver positive outcomes, they’re disconnected from the overall operation. What use is a job application if that data doesn’t populate into your onboarding system after a worker is hired? How can you use time and attendance data if it doesn’t seamlessly flow into your payroll system?
  • Cut Costs . A recent study conducted by HR.com shows that the most common benefits of integrated human capital management are better access to information and reduced administrative costs.
  • Maximize productivity . By linking all functions of HR, you can eliminate redundancies and duplicate work For example, pulling information from an employee’s job application into your onboarding system means you only have to enter information once.. Additionally, feeding time and attendance information directly into your payroll system can ensure employees get paid correctly the first time, every time.
  • Enhance employee work life . A human capital management strategy that utilizes integrated human capital management technology can also enhance employee work life—and not just the employees working in HR. An integrated strategic HCM solution not only helps ease HR processes, but it offers a consistent experience for all employees to: apply for jobs, get on the payroll, enroll in benefits, log hours, request PTO and review performance.
  • Speed hiring and onboarding process . With a faster, more efficient process new hires feel more engaged. Plus, with an employee self service platform with an easy-to-use interface it puts control in employees’ hands and enhances overall satisfaction.
  • Prioritize Training . Training is essential to employee retention, and with the right plan and tools, you can minimize the time it takes to get a new hire up and running.
  • Improve visibility . One major benefit of strategic human capital management is the visibility you gain into your workforce and business’ operations [i] . Strategic HCM can show patterns and holes in your employees’ skill set, learning and productivity. It also can reveal the impact of your recruiting efforts and other strategic objectives. Access into your workforce trends can help you anticipate changes and respond proactively.

The Importance of Strategic HCM

Human resources has come a long way. It now encompasses a full human capital management strategy—centered around your company’s biggest investment—your employees. Both a technology and a mindset, strategic human capital management helps you manage and develop your workforce throughout the employee lifecycle.

Optimizing Your Business with Strategic Human Capital Management

Still, strategic human capital management is not simply a tool to help with the growth of an individual employee. It can also help optimize your company’s culture, departmental processes, and organizational performance. If your company is looking to enhance its approach to human resources, retain talent, and increase productivity, implementing a strategic human capital management plan is the answer.

Experience the Benefits of Professional Human Capital Management Strategies

At EPAY, we understand the challenges of people management, especially when dealing with the complexities of an hourly workforce. That’s why our number 1 priority is to make your life easier. Our services, complete with easy-to-use cloud software and 24/7 customer support, manage everything for you. And when it comes to pricing for human capital management strategies, there are no surprises. You pay one straight-forward, all-inclusive monthly price. Request a demo to learn more.

[i] https://www.td.org/Publications/Newsletters/LX-Briefing/LXB-Archives/2011/11/Integrated-Strategic-Human-Capital-Management-the-Keys-to-Success-Now-and-in-the-Future

[i] http://www.businessnewsdaily.com/8145-human-capital-management.html

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If you don’t have a Human Capital Strategy, all “talent” related issues become “operational”, and, to be quite honest, really miss the boat when it comes to realising very REAL Return on Investment (ROI) in investments in “talent”.  For one thing – all costs are “EXPENSES” – not ‘INVESTMENTS”.  Yet the return on these costs are realised far beyond the immediate financial year.

Many organisations now have some or other “Talent Management” focus – generally focused on key IT staff attraction and retention, and sometimes focused on remuneration.  Some organisations even have a “Talent Manager” who’s responsibility it is to put in place certain Talent Management processes, again generally focused on the above points.  But the big question is “Do You have a Human Capital Strategy?”

What is “Strategy”?

I suppose the correct place to start is “what is strategy”?  Strategy is defined as “the direction and scope of an organisation over the long-term: which achieves advantage for the organisation through its configuration of resources within a challenging environment , to meet the needs of markets and to fulfill stakeholder expectations”.  Strategies exist at several levels in any organisation – ranging from the overall business (or group of businesses) through to individuals working in it – Human Capital Strategy.

Human Capital Strategy is ensuring that the organisation has the right configuration of competencies, attitudes and behaviours, in the right jobs, at the right time and with the right processes and measures in place – in order to delivery organisational strategy.  Human Capital Strategy is:

  • Linked to the business strategy
  • Based on identifying the competencies, attitudes and behaviours necessary to perform better than the competition and achieve business strategy
  • Anchored on understanding the external environmental factors that affect the ability of the organisation to attract and retain the identified competencies, attitudes and behaviours
  • Geared to ensuring that the business has the people capability to meet its current and future needs
  • Future focussed with clear links with succession planning (across all core jobs)

Creating a Human Capital Strategy

Strategic analysis, strategic choice.

This process involves understanding the nature of stakeholder expectations (the “ground rules”), identifying strategic options, and then evaluating and selecting strategic options.  Each option will have an anticipated measure of success applied as well as the investment necessary to achieve the success.  Choices are made dependent on the required outcome, timeframe, expected return on investment, and the availability of capital.

Strategy Implementation

Often the hardest part. When a strategy has been analysed and selected, the task is then to translate it into organisational action.  Strategic action plans form the basis for implementation, and the outcomes need to be measured on a regular basis to ensure that the expected outcome is being achieved.  If not, then elements of the Strategic Action Plans might need to be changed.

Human Capital Strategy is recognised as one of the key areas to create competitive business performance.  If you don’t have a Human Capital Strategy, your organisation is missing out on a major opportunity.

5 Essential Components of a Human Capital Management Strategy

  • Published September 24, 2017
  • Last Updated December 17, 2019

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Human Capital Management Strategy Components

  • Clarity in Human Capital Goals
  • Clarity in Direction
  • An Accountability System
  • A Foolproof Implementation Plan
  • Strategies and Policies to Accomplish Objectives and Goals

Human capital management strategies acknowledge that employees, their skills, experience, knowledge, concepts, and innovative ideas are all valued within an organization. A company must understand its employees inside and out in order to expect the best from them. A human capital plan refers to the development of strategies to recruit the best available talent, develop career plans for employees, mentor and coach the employees, motivate employees to deliver their best at all times, and develop performance management strategies, according to the Office of Personal Management . The following are five essential components of these strategies.

1. Clarity in Human Capital Goals

It is critical to understand the gap between an organization’s current state and its desired state. This can help to develop human capital goals that would not only increase employees’ overall efficiency, but also make them feel more attached on a closer level to the organization. Some examples of human capital goals include retaining dedicated and hardworking employees, continuously develop skills of the workforce, developing realistic induction programs for new hires, and only hiring the very best talent in the pool.

2. Clarity in Direction

This important component involves understanding an organization from the inside out. One must understand the senior management, customers, expectations and requirements of stakeholders, vision of an organization, budgetary constraints, and the needs of the current employees in order to achieve a concise, clear strategic direction. To do this, companies must collect data from employees, customers, and stakeholders to understand their expectations and needs. Discussing these issues will help define the entire vision of a company and its team. An effective analysis may involve analyzing current employees’ as well as where they see themselves and the company two years down the road. This type of analysis can help organizations pinpoint any flaws or gaps in the system.

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3. An Accountability System

No plan or process is successful until and unless it is managed well. It is critical to keep track of progress. An accountability system involves measuring the failure and success of an implemented plan. It also helps organizations to analyze the loopholes in the plan, if applicable, as well as ways to rectify the same. Without an accountability system, organizations will have no knowledge of whether a strategic management plan is working or not.

4. A Foolproof Implementation Plan

An implementation plan includes the steps and actions required to implement human capital strategies. Successful implementation plans include allocating a responsible resource, allocating budgets, and setting a deadline or time frame for implementing the human capital plans. As is the case throughout each component of an human capital management plan, clarity is key. Create an implementation plan that clearly demonstrates the strategy and goal.

5. Strategies and Policies to Accomplish Objectives and Goals

Once an organization has set objectives and goals, it can design policies and strategies to achieve them. Human resource professionals must design long-term plans to ensure their employees are happy with their jobs. Satisfied employees are more likely to deliver their best, thus increasing the likelihood of a success. Organizations may delegate responsibilities to employees based on their interest areas, expertise, educational qualifications, and skills. However, managers must regularly interact with their employees to understand their employees’ expectations as well as to monitor their growth within the company.

Human capital planning helps a company to design human capital policies, programs, and strategies to increase employee efficiency and help them to accomplish the already-defined objectives and goals of the organization. Implementation of the human capital management plan helps to ensure that human resources professionals are hiring the right candidates, training them in the most effective way possible, managing them as employees, upgrading their skills when necessary, and retaining them as employees.

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Human Capital: Key Principles for Effective Strategic Workforce Planning

The federal government is in a period of profound transition and faces an array of challenges and opportunities to enhance performance, ensure accountability, and position the nation for the future. Effective results-oriented management of the government's most valued resource--its people--is at the heart of this transition. This report is part of a large body of GAO work examining issues in strategic human capital management. Based on GAO's reports and testimonies, review of studies by leading workforce planning organizations, and interviews with officials from the Office of Personnel Management and other federal agencies, this report describes the key principles of strategic workforce planning and provides illustrative examples of these principles drawn from selected agencies' strategic workforce planning experiences.

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Key Components of Strategic Human Capital Plan

Employees - their knowledge, experience, skills, innovative ideas, concepts are all valued possessions within an organization. An organization must understand its employees well to expect the best from them. Human capital management refers to developing strategies to hire, manage, train, develop and retain top performing employees.

Human Capital management includes the following:

Strategic human capital management refers to alignment of human capital strategies with the goals, objectives, mission of an organization through extensive planning, analysis and management of human capital plans .

Human Capital Planning helps an organization to design human capital policies, strategies, programs to increase efficiency of employees and help them accomplish goals and objectives of organization. Implementation of human capital plan helps human resource professionals to hire the right candidate, train him, upgrade his/her skills, manage him/her and also retain an employee.

Let us go through key components of a strategic human capital plan:

Let us go through each of the component in detail:

Clarity in Direction

This component involves the complete understanding of an organization. It is essential to understand the budgetary constraints, vision of an organization, requirements and expectations of stakeholders, customers, senior management, needs of current workforce to achieve a clear strategic direction.

Discuss and collect data from stakeholders, customers, employees to understand their needs and expectations. It will help you define the vision of an organization and its workforce. Try to analyze the current state of employees and where they would exactly like to see themselves and organization two years down the line. Such an analysis will help you understand the gaps in the system.

Clarity in Human Capital Goals

Understanding the gap between current and desired state helps in developing human capital goals which would not only increase the overall efficiency of employees but also make them feel attached towards the organization.

Set human capital goals such as:

Strategies/Policies to Accomplish Already Defined Goals and Objectives

The next step once goals and objectives are set is to design strategies and policies to achieve the same. Human resource professionals should design long term plans to ensure employees are satisfied with their jobs and deliver their level best .

Delegate responsibilities to employees as per their skills, educational qualification, expertise and interest areas. Assign a team leader. Team Managers should take proper feedbacks from team members to monitor their performances. Know what your team members are upto? Managers must interact with their team members on a regular basis to understand their expectations from the system and also to keep a track on their growth in the organization.

Implementation Plan

Implementation Plan includes the actions and steps required to implement human capital plans .

Successful implementation plans include:

Accountability System

No process or plan is successful unless and until it is managed well. It is essential to keep a track. Accountability system involves measuring the success and failure of an implemented plan . It also helps you to analyze the loopholes in the plan (if any) and ways to rectify the same.

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Authorship/Referencing - About the Author(s)

The article is Written By “Prachi Juneja” and Reviewed By Management Study Guide Content Team . MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. To Know more, click on About Us . The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to ManagementStudyGuide.com and the content page url.
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  4. Penerapan AI (Artificial Intelligence) Dalam Proses Recruitment

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  1. PDF Key Components of a Strategic Human Capital Plan

    Implementation of the strategic human capital plan is a key step in an agency's progress to build a highly effective, performance-based organization by recruiting, acquiring, motivating, and rewarding a high-performing, top quality workforce. The plan becomes the roadmap for continuous improvement and the framework for transforming the ...

  2. How To Develop an Effective HR Strategy [2024 Edition]

    An HR strategy is a plan for aligning human capital investments with business needs. It shapes the character and direction of HR management activities to focus on supporting what the company is trying to accomplish. The HR strategy sets the direction for all the key areas of HR, including hiring, performance appraisal, development, and ...

  3. PDF 2016-2020 Strategic Human Capital Plan

    As depicted in Figure 1-1, the foundation of the 2016-20 SHCP is the Strategic Alignment system of the federal government's Human Capital Assessment and Accountability Framework (HCAAF). An annual human capital planning process will be used to implement and evaluate the 2016-20 SHCP at an operational and tactical level.

  4. Key Components of Strategic Human Capital Plan

    Implementation of human capital plan helps human resource professionals to hire the right candidate, train him, upgrade his/her skills, manage him/her and also retain an employee. Let us go through key components of a strategic human capital plan: Clarity in Direction. Clarity in human capital goals. Strategies/Policies to accomplish already ...

  5. Human Capital Framework

    The four systems that structure the Human Capital Framework - Strategic Planning and Alignment (plan), Talent Management (implement), Performance Culture (implement), and Evaluation (evaluate)- drive the agency's actions and decisions from overall mission to individual programs. ... The nodes in this network are key drivers of organizational ...

  6. 10 Principles for Strategic Human Capital Planning Success

    5. Plan ahead to assess results. The objective of the human capital plan is to maximize the value of a company's investment in people. This means you should think ahead about what you are trying to achieve and what your desired results might look like. Plan for what results you expect.

  7. Four Pillars for Developing a Human Capital Strategy

    Here's my framework for developing a human capital strategy. It draws on work by A.G. Lafley, Roger Martin and Jennifer Riel, as well as my own 30-plus years of experience working in various multinationals, including DuPont and Automatic Data Processing. It's built on the following four pillars: 1.

  8. Creating an Effective Human Capital Strategy

    A human capital strategy integrated with business strategy A provider of analytical support for business decision-making A provider of HR data to support change management

  9. Human Capital Plan: Definition, Importance & Key Components

    Key components of a human capital plan. 1. Workforce planning and forecasting. The first step to creating a human capital plan is understanding how people and resources contribute to the business's overall goals. Organizations must start workforce planning and forecasting as soon as the business strategy is agreed upon.

  10. Strategic human resource management

    HR role. Strategic human resource management (strategic HRM) provides a framework linking people management and development practices to long-term business goals and outcomes. It focuses on longer-term resourcing issues and other HR strategies, such as reward or performance, determining how they are integrated into the overall business strategy.

  11. What is Strategic Human Capital Management (HCM)?

    Human capital management aims to optimize the most important resource of any company: its workforce. HCM uses HR and business practices to help companies maximize their employees' potential, whether through engagement, productivity, or cost reduction. HCM is usable at every stage of the employee lifecycle, including: Acquiring and hiring top ...

  12. How to Create a Human Capital Strategy Framework

    The sixth component of a human capital strategy framework is to review and improve your strategy and action plan. This involves conducting regular and systematic reviews of your results and ...

  13. Strategic Human Capital Management

    The key to strategic HCM is treating your employees like an investment. To do that, you must take into account all parts of the employee life-cycle, from recruitment to retirement. ... Important Components of Human Capital Management Strategies. ... and increase productivity, implementing a strategic human capital management plan is the answer ...

  14. Creating a Human Capital Strategy Plan

    Creating a Human Capital Strategy. The real conundrum that organisations face is not how to put together a strong and effective strategic plan, but how to place the right people (competencies, attitudes, behaviours) against the plan to ensure full impact on execution. Human Capital Strategy seeks to systematically close the gap between the ...

  15. Effective human capital management strategy

    Strategic human capital management (HCM) refers to your overall approach to looking after your people. It refers to how you invest in your people's development and skills to increase engagement and achieve your business goals. It's a people-focused approach that combines recruitment, onboarding, payroll, benefits, and performance management ...

  16. PDF Worforce Planning Guide

    The U.S. Office of Personnel Management (OPM) provides leadership and guidance on Federal strategic human capital management. 5 C.F.R. 250, subpart B. defines a set of systems, including standards and metrics, for assessing the management of human capital by Federal agencies. Human capital management is a complex set

  17. 5 Essential Components of a Human Capital Management Strategy

    Successful implementation plans include allocating a responsible resource, allocating budgets, and setting a deadline or time frame for implementing the human capital plans. As is the case throughout each component of an human capital management plan, clarity is key. Create an implementation plan that clearly demonstrates the strategy and goal. 5.

  18. Human Capital: Key Principles for Effective Strategic Workforce Planning

    This report is part of a large body of GAO work examining issues in strategic human capital management. Based on GAO's reports and testimonies, review of studies by leading workforce planning organizations, and interviews with officials from the Office of Personnel Management and other federal agencies, this report describes the key principles ...

  19. HUMAN CAPITAL PLAN

    Introduction. The Equal Employment Opportunity Commission's (EEOC) Human Capital Plan for FY 20122016 outlines our mission, strategic goals, standards for success, and major human capital strategic initiatives. With the EEOC's approach to hiring, training, retaining, and rewarding its valuable employees, we expect to increase Agency ...

  20. PDF U.S. Department of Commerce Office of Human Resources Management

    This strategic plan includes a series of targeted goals and objectives to be implemented and monitored through an accompanying annual Human Capital Operating Plan (HCOP). This plan is designed to align with the Department's efforts to advance the . President's Management Agenda, the DOC Strategic Plan 2022 - 2026, and the Annual Performance ...

  21. Key Components of Strategic Human Capital Plan

    Human capital management refers to developing strategies to hire, manage, train, develop real reset top performing employees. planning and management starting the workforce. The 2016-2020 Strategic Human Capital Map (2016-. 20 SHCP) record forth the human capital aspirations and. Human Capital management includes the following:

  22. Key Components of Strategic Human Capital Plan

    Implementation of human capital plan helps human resource professionals to hire the right candidate, train him, upgrade his/her skills, manage him/her and also retain an employee. Let us go through key components of a strategic human capital plan: Clarity in Direction Clarity in human capital goals

  23. Creating an Effective Human Capital Strategy

    A changing workforce, universal competition, increases in information technology, new knowledge, the 2008 global recession plus demands on sustainable performance have...

  24. Key Components of Strategic Human Capital Planning

    Implementation are human capital plan helps human resource professionals to hire an right candidate, train him, upgrade his/her skills, manage him/her and also retain an servant. Each DoD Component develops an F&ES Civilian Strategically Human Capital Plan based on which fundamental sketch in. Paragraph 3.d. above the ...