The value of human capital is one of the values that build the company’s competitive advantage. Qualified, competent staff combined with appropriate technologies allows you to achieve the assumed business goals, which directly affects the company’s market position.
So what proves the value of human capital? Number of employees in the organization? Number of positions filled? or maybe the competences of employees? When saying “value” it is worth remembering that what is important is not quantity, but quality …
How to examine the value of human capital and its competences?
It is good at the beginning of the road to define what skills are present in the company, which of them are key and which of them are necessary to achieve the company’s goals and business strategy. Thanks to this, the company receives a picture of the skills performed in the enterprise, and this can also provide support during recruitment or determining development paths. The next step that will support the assessment of human capital is the definition of competency profiles, thanks to which skills can be included in a given position, and assigning appropriate levels of competencies will provide a complete picture of the competencies needed to ensure stability and appropriate skills for the company. After defining the list of skills and competency profiles, it is worth taking care of an appropriate assessment policy – grading scale, frequency, timely verification of skills. Thanks to this, information on employees’ skills will be updated, and this will provide current information on the value of human capital and the need for staff development in the event of competency gaps.
How to invest in human resources?
Decisions on investments in employee development must be a response to the needs of the company. Therefore, in order to properly decide in which direction to develop employees, a human resources balance should be prepared – a list of employees’ competences and verified according to the needs – that is, to verify the competency gaps. Then, on this basis, make a decision about what competencies are missing to ensure the stability of the company and set clear and defined development paths for employees. It is worth taking advantage of the high competences of employees and indicating them as internal trainers. This solution may bring benefits in the form of increased commitment, because the employee is appreciated and has the opportunity to develop his coaching competences! If the needs are much greater than the capital you have, you should consider external recruitment and increase your resources.
How to support making decisions about employee development and its implementation?
Undoubtedly, transparent data is essential when making decisions. As a result, decisions are based on facts, not intuition. This is where the Competence Matrix can come in handy, as it will present the balance of human resources and allow to identify competency gaps. It is possible already at the level of spreadsheets, where employee competencies are presented and then the determination of competency gaps is much easier. The sheets, however, may turn out to be insufficient due to, inter alia, danger of incompatibility of the version when passing the sheet from hand to hand. The SkillBox system ensures safe multi-access and historical data, thanks to which there is no risk of data incompatibility. In addition, the system will allow you to create competency profiles based on the skills contained in the Competence Matrix and will present the Balance of Human Resources in a graphic and reporting form.
The system also allows you to set time-defined development paths based on competency profiles, and will support their implementation both for the employee and the supervisor. Thanks to this, organizations are able to take care of current information about the capital they already have and about development needs.
Take advantage of the 21-day DEMO version and check how SkillBox supports employee management!
You can also use the Skills Matrix template, thanks to which you will systematize the competences of your employees!