Small Business Brief


5 Tried-And-Tested Ways to Improve Human Capital Management

Are you and your business looking for different ways to keep your top-tier talent in the house? Do you need a new method to train your employees for their respective positions? Is there a growing concern about your current practices?

If you said “yes” to any of the three questions above, then it’s time to alter your human capital management program.

Making the right improvements can help your staff and your company continue to excel.

Here are several ways that you can enhance your human capital management.

1. Be Positive and Honest with Your Staff

Start by changing your mindset before you change the strategies. Odds are, your management team hasn’t put its best foot forward with communication. It’s time to be more vocal and honest with your staff.

Anytime there’s an unexpected change in the workforce, it’s more than likely going to cause a panic.

There’s two things you can do when something like budget cuts occur: 1) not tell the staff and let the rumor spread among your workforce or 2) be honest and tell your staff directly.

While you can’t expect them to be any happier if you’re the one telling them, it allows you time to explain the entire situation.

For example, say that you and your staff have decided to make budget cuts by taking 20-percent of everyone’s current salary.

By telling this to the staff directly, you can explain that the budget cuts are in an effort to prevent the need to fire anyone. Rather than letting rumors fly among your workforce about your company holding money back, going bankrupt, etc.

2. Purchase the Correct Software

Your human capital management practices are only going to be as good as the software and technology you use to control them.

These are things such as a database for interviewing and hiring employees, marketing the job vacancies you have, and training software for your staff.

While it will ultimately be up to you and your management team to hire someone, the right software will help you focus on the right applicants.

Are you looking for an all-encompassing software for your small business? If so, then the Genie Payroll Plus can help you in all aspects.

You’ll be able to streamline everything from your payroll, employee benefits, Human Resource tasks, and so much more! Be sure to learn more about Genie Payroll Plus and how it can benefit your entire company.

3. Create Profiles for Each Employee

Regardless of whether you’re a small business or a company with hundreds of employees, it can be hard to put names to faces. 

That’s why it’s a healthy practice for the management staff to build profiles for every employee in the building. It helps the executives to put names to faces and understand a bit more about their workforce on a person by person basis.

More importantly, it can help with your human capitial initiatives because the profiles allow you a place to store work-related information.

That means that things such as their performance reviews, pay amount, background checks, promotions, and in-house awards all remain in one place.

This will help when an employee is interested in a promotion or making a lateral move to a different department. The manager of the new department will be able to familiarize themselves with that specific employee due to their employee profile.

4. Teach Each Manager Your Performance Assessment Strategies

Some company owners become flustered with their managers’ lack of detail on employee performance reports, but they never teach them otherwise.

If you have a specific set of guidelines that you want to use for assessing employee performance, then it’s up to you to communicate that with your management team.

Take a day or two to sit them all down, both together and individually, to go over your expectations for them. For example, your expectations of performance from your sales department will be a lot different than what you expect from your marketing department.

Sit both the sales manager(s) and the marketing manager(s) down individually to go over what you want to see from their assessment reports. 

Teaching them your preferred assessment strategy will also open up a conversation for ways to improve your workforce and reward hard work.

5. Focus on the Inside, Not the Outside

Hiring and recruiting is certainly an important piece of finding the right talent for your staff. 

However, they aren’t the most essential parts of building your workforce. What’s most important is that you invest in your in-house staff.

Be sure to hold frequent training sessions for both your entire staff, as well as individual training sessions by the department. Communicate your gratitude for their current workload and stress the importance of striving for improvement.

Try implementing new employee recognition initiatives to reward outstanding work and setting up each department with the proper resources.

For example, how can you demand your sales staff be more organized with their leads if you won’t give them a customer relationship management system to use?

Improve Your Human Capital Management with These Techniques!

Now that you’ve seen several examples of how to enhance your human capital management endeavors, it’s time to put them to good use!

Start by assessing your current strategies and highlighting the places you feel need to be improved upon. From there, you can find the perfect places to input the strategies mentioned above.

Be sure to browse our website for more articles on workforce management, as well as many other helpful topics.