Implementing Human Capital

1.0 Implementing Human Capital

High-performing organizations have recognized the need to invest in their human capital in order to achieve their missions and strategic goals. Providing continuous training and development opportunities that support personal development as well as organizational results is one of the essential forms of that investment. These organizations commonly follow certain important steps in developing effective training programs.

i. Identify the competencies – substance, business, or organizational competencies,

ii. Implement specific training and development programs to address the identified competency gaps, and

iii. Evaluate the effectiveness of their programs, whether or not it increases employees’ individual capabilities and performance levels along with the organization’s total performance.

1.1 Employee Turnover

Employee turnover or labour turnover is the rate at which an organisation gains and loses employees. A simple way to describe it is "how long employees tend to stay". The issue of employee turnover is vital and should not be forgotten when managing the human capital of an organisation. Examples of involuntary turnover are when a company loses employees through illness, retirement and even death. Resignations, on the other hand, can be regarded as voluntary turnover. Voluntary resignations may be avoidable if it is identified in time.

1.1.1 Measure of turnover

Many corporations practice the employee turnover measures in order to obtain information on the movements of their employees (Jääskeläinen, 2011). One of the common ways to estimate the effects of upcoming retirements is by monitoring the age structure of employees. Therefore, normal retirements should not surprise any employer as the employee turnover has already been measured and predicted. However, information regarding the skills and knowledge of retiring people should be somehow gathered in order to find out how retirement will affect the...