When the COVID-19 pandemic hit us, it disrupted most organisations and their workforce. This led to the understanding of how important human capital is. Not just on the organisation but also for every individual. As a result, some organisations immediately allowed their employees to work from home, to lessen the negative impact of the pandemic on their human capital. But what exactly is human capital?

What is Human Capital?

Human Capital is an intangible asset or quality of a worker. It’s a collection of one’s experience and skills, such as training, educational background, and work experience, and, most importantly, their attitude and behaviour, which most employers value. Developing human capital requires organisations to create a necessary environment for their employees to learn, acquire new sets of skills, and apply innovative ideas.

The more an organisation invests in the human capital aspect of their employees, the more their employees become productive and acquire new sets of skills. Here are some benefits your organisation may obtain by investing in Human Capital Development.

Increased Employee Satisfaction

Employee satisfaction shows how contented or satisfied employees are with their jobs. Investing in the development of your employees can lead to greater job satisfaction. Giving them proper training and education can help them with their role and show them that your organisation cares about their careers. As a result, your employees would feel that their workplace cares about their development and are more likely to be satisfied with their jobs.

Increased Employee Engagement

One of the things that organisations also need to invest in is their employee engagement. Unlike employee satisfaction, employee engagement addresses motivation, involvement, and emotional commitment. Engaged employees show more productivity and become more determined to do their duties. Investing in human capital development can help grow your employee engagement by means of career advancement opportunities to improve your staffs’ skills, giving them a reason to be engaged at work.

Thus, an organisation should ask their workers what areas they want to improve on and then grant opportunities in those areas. Personalise your development opportunities to engage your employees the best.

Better Company Culture

In addition to employee satisfaction and engagement, another benefit of investing in human capital is improving company culture. Company culture refers to the attitudes and behaviours of a company and its employees. It’s how staff interact with each other, how they share company values and all the decisions they make. Having better employee satisfaction and engagement can increase the overall positivity in the culture of the company. A positive culture can lead to engaged and happy employees and can also increase your employees’ productivity. 

Improved Organisational Communication

Organisational communication is the channel and form of communication that happens within the organisation. Communication is important to each individual within the organisation, particularly for the managers. This will help them perform the primary functions of management, such as planning, organising, and leading. By utilising human capital development, the quantity and quality of information passing throughout your organisation will significantly increase. 

Moreover, it can help your organisation know the employees who lack communication skills and assist them in this situation, so it may lead to an enhanced overall performance and productivity of each individual.

Increased Customer Engagement

As we’ve mentioned earlier, employees given growth opportunities are more likely to remain satisfied with their jobs. As a result, whenever customers interact with engaged and satisfied staff, their interactions are more likely to end with a positive result. In other words, the more satisfied your employees are, the more satisfied your customers will also be.

We at SSA Group offer consultancy services in Human Capital Development to help you develop your employees’ full potential. We also offer digital solutions from management systems, e-Learning, to even augmented reality. Also, we have SSAVANT, our simple and intuitive learning management system that can help you easily track your learners’ progress and performance. If you think we have what you need to prepare in transitioning to an innovative way of learning, get in touch with us!