What is your organizations understanding of human capital value? Human Capital is defined as the collective skills, knowledge, experience, characteristics or other intangible assets of individuals that is viewed in terms of their value or cost to an organization.
The higher the individual human capital usually pays off in an increase a worker’s productivity. Higher worker’s productivity usually pays off in a dripping down effect to increased margins of the organization.
One’s human capital is created by how much that individual invests in their own education prior to joining the organization. That prior investment of education usually pays off in a higher pay grade to that individual.
A perfect example of an investment of human capital is as follows. I had the pleasure of meeting a gentleman that manages a hedge fund specializing in cryptocurrencies. He told me how he identified a trend, years back and decided to invest 30 minutes a day in studying cryptocurrencies. He felt that 30 minutes a day in 5 years would make him an expert, well now he and the hedge fund that he manages are very successful in this area. His success is a direct result of his investment in his own human capital.
Knowing that education is the best investment in human capital as it will pay off in terms of that higher productivity and results. The question lies is what sort of education is your team consistently getting on their own and/or from the organization?
In addition, we first must be in the understanding that our team is the number one most valuable asset in our organization. We hear many times of the customer comes first. My question is, who takes care of your customer? It’s your team, of course.
Take better care of your team. Create the environment of accountability and ownership. Create the environment of consistent learning, praise and advancement. Create the culture of which your team become all in and become raving fan marketers of the brand.
When you take care of your team, they will naturally take care of your customer, your customer will be happy, they will come back more often, tell their friends and your organization will continue to grow.
The simple message here is to take care of your team, make an investment in their human capital, continue to expect the best from them and you’ll be quite happy that you made your organization number one priority human capital.