Analysis of Greatest Organizational Asset: the Human Capital
Research | 21/06/2024 | 10 minutes read
The ceramic sector is facing a time of high competitiveness, in which the quality and stability of the processes are an essential requirement to succeed in this war between geographical areas and brands, while a good brand positioning, a significant degree of innovation together with a continuous adjustment of operating costs become the gateway to a large part of the target markets.
In addition to these factors, there are others specific to each geographical area, such as the growing environmental demand in industrial processes, the absence of local raw materials or the lack of specialized labor that, in the end, complete the list of critical factors that, if properly managed, guarantee the success of the business.
Behind all of them is a common resource, human capital.
The value of the Workforce
The work that the human factor has in the ceramic manufacturing process is enormous, enormously higher than the direct cost it represents and much higher than in other industrial processes mainly due to a significant potential for process automation.
The performance of manpower has a direct impact on each and every one of the areas of the process and, as a consequence, on the overall performance of the plant in terms of quality, productivity, energy consumption, use of resources (human and material)…
In addition, a well-trained team is a fundamental piece for innovation, as well as for the training of new employees.
It is very easy to talk about the «human capital» of companies, without often taking into account the humans who make these business projects possible. Ideas, actions, skills, resources, strategies and the ability to transmit all this knowledge are the axis of the human capital of companies. We must not lose sight of the meaning of human capital, we must value it and, for this, know what the mechanisms are to build it.
Development of Human Value
Human capital is mainly composed of three factors:
- Vocational education and training
- Professional experience
- The skills and abilities of each individual
Promoting and believing in human capital as a source of well-being and for the development of people in companies are attitudes of organizations with values such as:
Features present at organizations promoting the Human Value.
In short, they are organizations that attend to the heart and motivations of their members.
It is not new to read that a motivated worker is the best ally for the achievement of an organization’s objectives, but then why are there still few companies that develop this type of actions described above? In order to answer this question, we must identify fear as one of the most relevant and influential factors.
The fear of the feeling of low control over the organization, the fear of differences of opinion, the fear of losing «power», the fear of not being productive, the fear of the entity being no longer valued, the fear of instability, the fear of not making a profit, the fear of blurring the brand… These are some of the fears that arise when the management of organizations wants to integrate human capital as an axis of development.
In order to release fear without panicking and thus avoid the consequent feeling of chaos and vertigo, we must decide what our values will be as a company. Values provide us with identity, structure and security by building solid and stable work teams (human capital).
Once organizational values have been described, it will be easier to integrate them with actions that are always aimed at achieving them or aligning ourselves with them. When you are faithful to the value structure, you are faithful to well-being and therefore you will be developing human capital.
Benefits of Human Capital Development
Just think about it…
On its own, an innovative team, made up of the best specialists, in an enviable work environment, is a great option for investors. And also to create alliances with other companies.
These are some of the main benefits from a right Human Capital development:
Constant training and preparation is one of the best ways to motivate your employees.
On the one hand, you will motivate your staff to take on greater challenges and climb positions within your company. And you can even generate an environment of healthy competition.
On the other hand, by providing training to your employees, they will have more resources to perform their jobs. In addition, they will feel less overwhelmed and better prepared for all kinds of tasks.
If you provide advice, advice and feedback to your employees on a day-to-day basis, they will feel supported and comfortable at work.
All of this translates into happier employees. The more satisfied, the more productive they will be and the better their results will be in the short and long term.
One of the biggest problems for companies is the loss of talent and employee retention.
According to an Indeed report, dissatisfaction and a lack of challenges and opportunities for growth are the leading causes of job attrition. And this is where strategies based on human capital can help you.
Training will help you prevent loss of qualified personnel, and will help you keep your employees motivated permanently.
But it is not only about training. Human capital strategies are key to creating a healthy and communicative environment. One where your employees can continue to learn constantly, and where they can feel heard and supported.
Not all companies offer training or education for their employees. And much less training for inexperienced employees.
Therefore, a good human capital strategy will help you position yourself as one of the best options in the labor market.
The result? Not only will you be able to attract the best prospects, but you’ll have a better chance of building their loyalty.
This way, professionals will not only see salary opportunities in your job offers. They will also see huge opportunities for growth; opportunities that will attract and retain better-qualified future employees.
An added value is that, by using this to strengthen your employer branding, you won’t have to invest as much time and resources in finding the best professionals. The best prospects will come to you.
More motivated employees mean more efficient processes and better results in the short and long term.
In addition, employees will be much better trained and able to take on more demanding tasks and responsibilities.
On the other hand, human capital-based strategies will motivate your company’s members to keep up with industry news and trends.
The result? Your team will stay ahead of the curve and be able to find innovative solutions to all kinds of problems and challenges.
Lack of communication is another of the main causes of professional desertion. Many employees decide to leave their jobs, even if they receive mind-boggling salaries, because they don’t feel heard by their managers and executives.
Investing in human capital will also help you create a more communicative work environment.
Let’s look at it this way.
Permanent advice, training and the dedication of resources will strengthen the relationships between the different members of the company and their teams. In addition, it will strengthen relationships between managers and employees.
The better the communication within your company, the lower the risks of losing staff.
A good investment in human capital will not only increase employee satisfaction.
A satisfied and well-trained team is a team capable of providing the best customer service. In turn, you will be much better prepared to respond to their needs and face problems and unforeseen events.
As a result, your employees will build more trust with your customers and prospects. Something that, of course, will be reflected in your sales and customer retention rates.
Human capital is also essential for building and strengthening the brand.
For many, nothing generates a better reputation when it comes to selling than good customer service. And this may be the best marketing strategy.
Companies that know how to prioritize the needs of their customers and serve them in the best way are the ones with the best recommendations. And if your team is well-trained and motivated to drive this strategy, your company will continue to gain popularity in the market.
So yes, human capital is also an investment that will help your marketing strategies.
When we talk about credibility we are not only referring to customers, you must also include stakeholders and potential investors.