Invest in Human Capital: The Employee Experience
ceo engaging with employees

Invest in Human Capital: The Employee Experience

human capital [n.] Human capital defined is the combined abilities, knowledge, or other strengths of people that are used to create economic value for employers. Syn. employees, workforce, staff, team

We’ve all seen the term “human capital” a lot over the past several years. Human capital management, or HCM, is the practice of guiding your employees through the employee lifecycle, from the time your recruiters are seeking them out in order to fill a job requisition to the time they separate from your company. Human capital management lies in three central focus areas: employee acquisition, employee management, and employee optimization.

The ultimate goal for these three areas is to invest in your human capital to keep them both happy and engaged. There are several ways to go about doing this, by using what we’ll call “soft” methods and through HCM technology.

Investing in Human Capital Using Soft Methods

It’s easy to put into practice small, relatively inexpensive (or free) incentives and processes to help ensure your employees stay engaged, such as:

1. Foster an open-door policy.

When employees feel as if they are cut off from their managers – whether it’s physically or due to lack of open and honest communication – resentment can quickly build, resulting in an unhappy and disengaged workforce. Ensuring that your physical capital, your employees, have easy access to their managers (and each other) helps promote a welcoming company culture.

2. Establish well-defined job expectations.

Have you ever worked for someone who was incredibly vague in outlining the responsibilities and tasks of your job, leaving you hanging and wondering what the heck you were supposed to be doing? Don’t do that. Employees want to know what’s expected of them, so be sure you invest in appropriate training and process manuals. Most members of your workforce, especially Millennials, also want to understand how their jobs relate to and affect the business as a whole.

3. Provide educational and career growth opportunities.

Human capital development programs such as classroom training and virtual courses are two popular ways used for helping employees enhance their skills. Additional opportunities to consider that don’t require a lot of expense or effort (on your part) include: assigning stretch goals, executive mentoring, and attending networking events.

4. Offer telecommuting if it works with the role.

Giving employees a flexible schedule that includes working remotely provides them with a work/life balance that many of them value.

5. Food, Glorious Food.

Everyone likes to be treated to a fun time, such as a Friday Happy Hour or a weekly lunch… especially when it’s on the boss’s dime. You could consider themes such as Taco Tuesdays or Food Truck Fridays.

female-colleagues-at-company

HCM Technology Needs to Be Part of Your Capital Investment

The other side of the coin when it comes to investing in your people is your company’s technology. We’re not talking about giving all of your employees the latest laptops and iPhones; we’re talking about improving your human resource technology and processes. Today’s hyper-digital economy demands tools that can support critical HR functions while at the same time, improve employee attraction, engagement and retention.

The Recruiting Game

The way candidates apply for jobs is changing. They’re no longer willing to spend hours of their time filling out job applications – or worse yet, uploading their résumé only to find out that an outdated careers page requires them to type in the same information that’s on the résumé they just submitted. And, they don’t always apply for a job from a computer. Reducing barriers for potential employees to apply for jobs can help you increase the number of candidates in your recruiting pipeline, while at the same time improving the user experience from the first touch.

The Onboarding Experience

Contrary to what a lot of people believe, onboarding newly hired employees should begin before the first day on the job. But you can’t really do that if you’re stuck with outdated processes. Your new employee shouldn’t have to spend the majority of their first day filling out a bunch of paperwork. HCM technology can help you engage employees early – before their first day – by sending company information, handbooks and other policies to them before they start so they can feel prepared and engaged right away.

Stay Connected

An HCM solution offers simple ways to let managers help and keep in touch with their employees, all without having to go to the HR middleman. Tools such as employee self service, where employees can easily make changes to their payroll deductions or enroll in a benefits plan, take the burden off managers and give employees control. Additionally, performance reviews, once a dreaded yearly event, can be automated enabling employees to enter their goals and objectives and letting managers review and approve. And, all of the information is stored in a single, connected database.

Effectively managing human capital can have a significant impact on the economic growth of your company. As the face of the workplace evolves, businesses must adapt and step into today’s world, leveraging technology that enables them to better attract, engage with, manage, develop, and retain the very best talent. By investing in HCM technology, you’re investing in your most important resource, your people.


Subscribe to Our Resource Center Digest

Enter your email below to receive a weekly recap of the latest articles from Paycor's Resource Center.

Check your inbox for an email confirming your subscription. Enjoy!

More to Discover

Why Diversity in the Workplace Matters

Why Diversity in the Workplace Matters

The latest research from the likes of McKinsey and the Harvard Business Review reveal that companies with diverse workforces are more profitable and have greater chances of attracting and retaining top talent. Still, many organizations have been slow to develop inclusion strategies primarily because they’re unsure how to promote and execute these initiatives. Start from the top In McKinsey’s research, they found that companies with the most diverse executives are 33% more profitable. Diverse management teams promote more innovation because individuals from different backgrounds with unique minds and ideas can come together and share input based on past experiences. If you’re looking to optimize a process or solve a lingering issue,...

Warning Signs of Disengagement

Warning Signs of Disengagement

Four out of five medium and small businesses say they don’t effectively engage their employees. Why? Because many organizations lack ownership and the resources needed to understand what actually motivates their people. Organizations also tend to ignore the warning signs of disengagement believing a few unhappy employees can’t sway the masses. But similar to bankruptcy, disengagement happens gradually and then before you know it, the majority of your workforce is affected. Only 33% of employees are actually engaged at work, according to a Gallup study. Not only can disengagement quickly spread throughout an organization, but its impact is felt across all areas of the business. From lost productivity to affecting morale and even customer...

How to Create the Ideal Employee Experience

How to Create the Ideal Employee Experience

All companies covet an engaged, motivated workforce. When your people are engaged, they don’t behave like an average employee. They’re more like committed volunteers devoted to a mission, always seeking new opportunities to boost morale and make a difference. It’s no surprise then that, according to DecisionWise, in 2017, 73% of executives said employee engagement was a top concern. Yet Gallup’s annual survey of engagement continually finds that only 1/3 of employees are engaged at work. Most (51%) are not engaged and, even worse, 16% are actively disengaged. With so many companies focused on engagement, why don’t we see better results? A primary reason is that not all companies focus on the employee experience. Everything from...

Taking the Guesswork out of Employee Pay - Part 1

Taking the Guesswork out of Employee Pay - Part 1

Deep Dive - External Equity and Market Pricing Feel more comfortable with how you determine employee pay at your company by learning how to align market pricing with your business strategy, understanding survey data and market pricing steps. Speakers: Christine Ippolito & Joanna Hall Christine Ippolito, SPHR, SHRM-SCP - Christine is the Founder and Principal of Compass Workforce Solutions, LLC, a consulting firm providing strategic human resource expertise to small businesses to reduce exposure and increase profitability. She has served clients in a leadership capacity for 25 years in multiple industries and environments within Fortune 250, venture capital and equity-backed companies, as well as privately held and family-owned...