Why this topic is important – The business case for addressing it > Forum Main> Develop and Strengthen the Capabilities of Management and Staff Related to HR/HCM Responsibilities > Why this topic is important –...

Organizations today  realize the importance of investing in human capital to stay on top and grow. Human capital is one of the largest expenses in the company. On average, companies spend 36% of their revenues on human capital expenses. If the right human capital strategy is implemented, research suggests that these outcomes can be achieved:

-          Improved workforce productivity

-          Increased business performance

-          Reduced turnover

Source: Derek Berry, “HR Effectiveness – Where do we start?” (28^th April, 2009)

As these business outcomes directly impact the company’s bottom-line and continued viability, all managers should be involved in human capital management and not just the HR Department.

HR is a shared responsibility. It cannot operate as a solitary function. In many instances, HR is a change agent and implementer of HR systems and processes, but need the key stakeholders (senior leaders) to support these changes. Without their participation and commitment, outcomes are greatly compromised

The new generation of employees is young, impatient, and demanding. They want their bosses to care personally about their work-life balance and general welfare, to give them individual attention, to be personally concerned about their development and career advancement instead of relegating that role to HR. Management has to constantly motivate their talents to keep them.