Human Resource Capital
Posted by Billy | Filed under Business
Human Resource Capital
I was just thinking…yes as scary of a thought as that may be. Of course, I don’t do scientific research into topics such as these, but base it off of my personal experience in life, experience of witnessing it happen to others and experience in different situations.
As such, take it as you will and enjoy the read.
The People Problem
You know the problem I see with businesses?
Human Resources. Human Capital.
Businesses spend, use, abuse and burn through capital. They consume, waste and dry up resources. Though on the surface, it may not seem as such, many oft do this to their resources and capital. What, then, do they do with their Human Capital, or as more widely used term, Human Resources?
So often times, employees – thus referred to as Human Capital Resources – become spent, burned out, used and abused, wasted and dried up people.
Often times I see “people” problems that businesses face coming at a direct reflection of the business problems. Operations, management, ownership and stakeholders are the decision makers, policy makers and overall responsible for the people of the business. The employees.
Yes, each employee must choose who they are, how they conduct themselves. Yet, as people of habit and people of reflectivity, your human capital does and reflects that which you, the owners, principles and management, do.
The Business Problem
Business wonder why productivity falters, turn-over rates are high or why they have a hard time attracting top talent. Likely, it is, that the business’ consumption and spending of human capital resources is performed in a manner that in the end their people become used, abused, wasted, dried up, spent or burned out employees.
A business with used, abused, wasted, dried up, spent or burned out employees is not competing at the level it should in their market. The business is likely not attracting top talent. It is also likely the business is not holding onto or retaining the top talent already present.
The Business of People
A business with employees is the sum of the employees. Have you been to a restaurant that absolutely wowed you with service? It is likely that the employees are truly genuine in wishing to serve you, the customer. This, in turn, has a good chance to reflect that the business is genuine in engaging employees as people, rather than as capital or resources to be spent or consumed.
I imagine, just as likely everyone else, you have had a very poor experience at a business. This was memorable to you, and may have been centered around an employee not providing service adequately. It may be a poorly made product. Whatever the case, in my experience, it can be traced back to a consumption of human resources or the spending of human capital.
It is to an advantage that a business invests in its human capital. To seek a return on that investment is expected. Personally, many people make investments – whether financial, property or other types. They nurture these investments, take care of them and expect a return on them.
Likewise, should a business invest in its people, its human resources and human capital. The business should, just as an individual would, nurture this investment, take of it and expect the return from it.
Unfortunately, often times, the return is expected without much, if any, investment. As well, without any nurturing or care taking, a return is expected, and sometimes demanded. Performance is a requirement without building up. One does not win an automobile race without performance, and performance of the automobile does not come without building up of the right parts.