The importance of human capital in today’s business landscape cannot be overstated. With the rapid pace of change in technology and globalization, companies need to rely on their employees’ skills, knowledge, and experience to remain competitive. Strong human capital can provide a company with a unique advantage by driving innovation and delivering customer value. This can pay off for businesses with consistent earnings and more resiliency during crisis. It also ensures that these businesses are more successful at retaining talent, with attrition rates that are approximately 5% lower than their peers. In fact, the companies that build human capital typically are responsible for boosting their employees into higher earnings brackets throughout a career lifetime.
There are several different approaches to the “skills development” business model, and it becomes clear why some businesses are more successful than others when turning human capital into a competitive edge. Let’s take a look:
These organizations typically deliver top-notch financial results, but place far less importance on developing employee talent and providing an enriching and nurturing work environment.
Organizations with this type of mandate are all about developing their employees, but tend to lose momentum when it comes to converting that culture into strong financial returns.
This is where the majority of companies reside, with no extra attention placed either on people or performance.
People + Performance Companies
These companies are the true winners. They have discovered the symbiotic relationship between people and performance, and truly excel at providing opportunities for their human capital to build skills, while maintaining the highest bar possible for financial returns. Unlike Performance-Driven Companies, P+P Winners deliver consistent results with greater resiliency, and they also exhibit more success when attracting and retaining talent. Considering the volatile economy and labour shortages that the business world is currently struggling with, this translates into a significant advantage. In fact, P+P Winners have been 1.5 times more likely to be business leaders year after year, while enjoying approximately half the earnings volatility.
It’s also important to note that P+P Winners are consistent talent attractors, demonstrating attrition rates up to 5% lower than those of Performance-Driven Companies. With a focus on skills development as well as comfortable work environments and cultures, their employees experience much higher job satisfaction and are 1.3 times more likely to access higher lifetime earnings than employees of Performance-Driven Companies.
So what’s the secret? How do the P+P Winners master both the people and the performance fields? Research has shown that while skills development is an important component of adding value to human capital, there is another, equally critical element: organizational capital. This concept refers to the management processes, systems and culture within each organization and includes everything from training programs to department structure, motivation and workflow, communication, positive and inclusive workplace culture, and consultative leadership style. When all these elements are optimized, well-oiled teams emerge.
So while it’s true that people are any organization’s core asset, and every workplace should work for its employees, many businesses still struggle to develop their employees effectively without compromising performance. This is a nuanced practice that requires a thoughtful, emotionally intelligent approach while keeping a sharp eye on the bottom line. This will involve change from leaders who set the vision and model behavior and trickle down through management who have greater interaction with individual teams and can heavily influence the employee experience.
Here’s where it makes sense to consider how establishing strategic partnerships with BPO outsourcing companies can support your critical development of human capital. Anexa, a leader in the business process outsourcing industry, knows a thing or two about human capital as we rely solely on our carefully curated pool of highly trained specialists to maintain our reputation as the best in the business, and represent your brand so that you can be the best in YOUR business. Our customer-based services are conducted through various channels including telephone, chat, WhatsApp, Facebook, Twitter, SMS and email. They also include operations such as promotion and sale of products and services and we can support you with loyalty campaigns, tech support, and tiered troubleshooting. We have an expert for literally every business process that you require.
Reach out to Anexa for more information on our exceptional business process outsourcing services.