Posted by Nathalia Lopes on 12 Abril, 2022
Human capital consists of the set of skills, knowledge, experiences and competencies that are part of each individual. A company’s employees contribute significantly to success by offering their expertise. The work of the company’s employees is reflected in the generation of financial value and corporate value.
Organizations are made by people and, in this way, it is essential to invest in human capital. It is the human background that contributes to make a company better seen by its target audience. It is what generates better results in the market. Continue reading and know 5 reasons to invest in this capital.
Human capital: 5 reasons to invest
Investment in human capital leads to the development of the company, after all, it is the people who make the projects come true. It is their work that depends on the success of the negotiations and the redirection of the enterprise when necessary.
Thus, investing in human capital is essential for business development. The following are 5 reasons to make this type of investment in your business.
1. Increased productivity and employee engagement
Investment in human capital contributes to increase productivity and employee engagement. The consequences of these increases are: more notoriety for the company and better positioning in its market segment. Have you noticed that many of the companies elected as the best to work for are also the most profitable?
This is a direct relationship, because by finding a welcoming environment to develop their skills and competencies, the individual grows more. Professionals feel more valued in companies that invest in human capital and, consequently, yield more.
In an environment that favors satisfaction, it is easier for employees to become more productive and deliver good results. Creativity develops much more in places that prioritize human capital and value it.
2. Increases the retention of talents
Investment in human capital contributes to increasing the company’s talent retention capacity. It is also important to mention that the retention of talents is a great difficulty in different parts of the world.
People look for more than wages, they want to develop into careers that fulfill their cravings. Employment has become more valued in the sense of complementing the construction of the individual’s happiness.
Several surveys regarding retention of professionals note that the reasons for resignations go far beyond higher wages. Many employees leave companies in search of opportunities for personal and professional growth. The attractions that drive these individuals to change jobs include more time for personal life, a more salutary corporate environment, among others.
It is worth investing in human capital to create better working conditions and thus reduce the turnover rate. The expenses that the company has to make constant selections of employees and integrate them into the team are much higher compared to potential investments. When you put this consideration on the pencil tip, it’s very simple to understand which is the best way.
3. Gives more value to the company’s brand
Companies that offer better treatment to their employees are better regarded by society in general. Did you know that offering a healthy environment to your employees will be reflected in more financial gains? Society is increasingly critical and seeking plausible arguments to choose between this and that company when buying.
With so many possibilities for products and services on the market, the spectrum of reasons to make a decision is increasingly broad. Neglecting human capital can become a downside that will help your company to be left out of competition. In addition, good strategies aimed at employees tend to receive large spontaneous media.
And of course we cannot fail to mention the fact that satisfied collaborators become publicists of your brand. A person happy with the place where he works tends to talk about this satisfaction with friends and acquaintances. By exalting the company as a workplace, the employee makes it more interesting as a purchase option.
4. High return on investment
The return on investment in human capital is quite high, as it contributes to broaden the knowledge of employees. Investing in people who are part of your company makes it have more growth potential.
One of the most common forms of investment in human capital is the training of professionals. By investing in the education of employees, the company expands its knowledge. From this larger framework of knowledge, they have more tools to offer.
The investment in training aimed at improving the relationship between employees also offers excellent returns. Employees who have more emotional intelligence tools become more prepared for the constant challenges.
As we mentioned throughout the article, this investment that creates better conditions is reflected in retention. Professionals now have the desire to maintain the benefits they have. Even if opportunities arise with higher wages, they will think very hard before changing jobs.
5. Reduction of conflicts
When there is investment in human capital it is much rarer that conflicts arise between employees. One of the factors that reduces the productivity and quality of the company’s products/services is certainly the large amount of conflicts in the work environment. By offering a pleasant environment in which everyone can solve their issues, the company increases its productivity.
An environment in which there is an incentive to good coexistence among professionals is more stimulating to the exchange of knowledge. They become more likely to work as a team, arriving at better solutions and in less time.
Companies that do not have this concern with human capital may face difficulties in putting their projects into practice. The development of an environment in which people have a desire to collaborate with each other is the secret to success.
Investment in human capital is fundamental to the good progress of the company and the achievement of success! Take the opportunity to leave your comment below and share the content on your social networks to pass the information on!
Source: https://www.ibccoaching.com.br/portal/gestao-de-rh/5-razoes-para-se-investir-em-capital-humano/