Human capital and technology: valuation or competition?
With the advancement of digital transformation, it is essential that companies adapt to improve processes and not be left behind. All sectors are directly and indirectly affected and raise an alert: with the advancement of technology, how are people? The impact of technology on human capital management has generated recurring discussions, although technology is a sign of evolution and innovation. In this scenario, HR professionals play an important role: use technology to manage human capital.
Follow us in this reading and let's discover together how technology came to help improve company processes and how good human capital management can bring benefits and results to your company. Shall we go?
What is human capital?
Human capital, in a simple way, is the combination of skills, knowledge, competencies, and behaviors that a person has to carry out their functions at work. The term was created by Gary Becker, from the University of Chicago, who defends that people They are not just a quantity to be measured, and, yes, a set of elements that add value to the company. They are:
- Economic and strategic elements;
- Creative elements;
- Elements of innovation.
Understanding this concept is important to begin to understand the relationship between people and companies, to build effective strategies for human development.
What is the importance of human capital for the company?
People are, without a doubt, a company's greatest asset. Think about how to achieve a competitive advantage: machines and equipment are not capable, they need people to get there. That's why it's so important to understand how people feel in the organization and to offer them all the grants to develop and improve their skills. Employees with developed skills take the company to another level, because they are able to identify the appropriate resources, evolve and adjust to challenges. Only in this way is a company able to develop and take advantage of all the potential that professionals have for strategic actions.
Human Capital vs. Technology: the important role of HR
As we anticipated earlier, digital transformation revolutionizes companies in several aspects and the HR sector is one of them. HR has been increasingly responsible for the development of a company's professionals, which leads, consecutively, to the evolution of the company. It is precisely by managing human capital and being able to measure and monitor various indicators that HR assumes a more strategic position and helps to raise training points and improve the human relations of an organization.
Why manage human capital with technology
“You don't manage what you don't measure, you don't measure what you don't define, you don't define what you don't understand and There's no success in what you don't manage.” William Edwards Deming's famous phrase reflects the importance of good management in an organization. Managing human capital is the basis for company growth and Technology comes to aggregate And bring automated processes, faster and safer to measure and monitor various indicators that value the company's objectives, such as productivity, satisfaction rates, engagement and motivation, and absenteeism. For example: a company that uses management software can automate some tasks and leave more free time so that HR professionals can focus on activities that will promote greater capacity building and well-being for employees.
How to value the company's human capital?
So far we have talked about what human capital is, its importance and how technology has helped HR professionals to manage their activities effectively, observe more practical indicators, and thus offer development to the company's employees. But then, how can human capital be valued and developed in a company? The HR team is faced with a strategic challenge in several stages, to identify the best actions at each moment. Check out the following:
Through better selection processes
The process of valuing human capital begins with recruitment, when HR needs to identify people who are connected to the organization's culture and who have the right skills for the vacancy.
Getting to know the employees well
It is essential to know the employees well and, for this, it is necessary to analyze indicators from the teams' evaluations. With this information, the HR team will be able to direct people's development actions more effectively.
Developing competencies
It is important to promote actions and training to empower employees, as it is the most efficient way to keep teams updated and more prepared to adapt to company changes and challenges, acting in an increasingly strategic way.
Aligning goals and objectives
People need to know where they are in the company and where they can go. Without this information, employees have no expectations and may become accommodated, lose productivity and, consequently, lower the satisfaction rate with the company.
Engaging and Retaining Talent
It is important that employees are engaged and feel part of the processes, so that they understand their importance within the company. Therefore, promote recognition actions and show that the company values them.
Extending knowledge
Don't limit knowledge within four walls. Involve partners, suppliers, and customers and use this know-how to bring your employees closer to that reality. Promote actions in which the employees themselves train each other, this engages and allows more knowledge to be shared.
Summary: human capital and technology, a combination that works
In short, highlighting human capital makes the company achieve more effective results, because it is constantly developing skills and strengthening relationships with employees. Technology only comes, then, to facilitate the processes of HR professionals, who will have less work to collect the indicators and monitor employee performance, obtaining information in a practical way and thus promoting strategies for training and developing the company's human capital. We at Clicksign are passionate about technology and are here to bring you market trends and discussions. Keep following our blog and stay up to date with our tips for breaking barriers and elevating your business with technology. Until the next post! If you want to digitize your processes, as the main companies in the market do, in an applicable and legally valid manner, don't waste time and discover our Plans and Pricing.
