Human Capital Management – Identifying the Weak Links

Supriya Nigam is a lead Content Writer & Digital Marketing Strategist at CareerBuilder India. Her passion for helping people in all aspects of digital marketing flows through in the expert HR Technology industry coverage she provides. Also, an avid Yoga practitioner.

The “war room”, where once battle stratagems are formed now becomes a “Human capital management” zone for industry leaders and CHROs, where today’s business tactics are devised, and actions are monitored for better workforce management.

By designating a War Room of HR, business leaders recognize that from time to time, it is imperative to take a step back from the commotion of routine activity and survey the scene from ten thousand feet. From a holistic outlook, an organization can pursue the correct strategies, identify the right direction and enact appropriate tactics.

Human Capital Management – Identifying the Weak Links
Human Capital Management – Identifying the Weak Links

In the battle of hiring the best talent, HCM (Human Capital Management) is the war room for HR managers. As the mainstay of strategic human resources, the workforce plan attests that talent management and human capital strategies run parallel to the business goals. As workforce plan hinges on effective forecasting, preparation, and analysis, the failure to construct and implement an effective one will virtually unquestionably deliver an adverse impact to an organization’s ability to inspire, acquire and retain talent.

Planning matters

For multinational organizations in the vibrant Asian market hoping to stay competitive and relevant, now is the time to build workforce planning capabilities. The fact is that a few corporations are currently experienced planners, as it takes a time to master this critical function. In one of the surveys conducted in Southeast Asia, it is reported that 95 percent respondents agreed that workforce planning is either of high importance or business-critical. However, only 31 percent admit being able to execute it commendably.

Due to high turnover rate and headcount growth, for many organizations’ short-term staffing needs to overwhelm even the best intentions for workforce analysis and planning.

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Need not apply unreliable data

Your ability to readily access and analyze data is not only vital to evaluating the status quo, but it is imperative to forecasting future demands provided high growth, and high paced elements describe your work environment.

It is essential that companies must have access to robust qualitative and quantitative data if they want their human capital management planning to hit the mark.

How do you gather data?

– HR information and payroll systems are an excellent source to collect quantitative data including, salaries and benefits, workforce demographics (gender, age, and location), history of roles and experience as well as employment tenure.

– On the contrary, talent management systems are an excellent source of qualitative data including, training and development history, competency and performance ratings, career plans, flight-risk ratings, successional status and mobility preferences.

This combination of quantitative and qualitative data affords insights that cast light on the weaknesses and strengths of an organization’s current workforce. It also indicates the future leadership bench strengths and capability gaps.

In the modern work world, the growing workforce comes with complex and increasingly disparate data that demands dedicated focus to maintain its reliability and integrity, which emerged as a challenge for many organizations.

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Even with the presence of state-of-the-art human capital management systems to capture, mine and track the data, very few enterprises possess the interpretative and analytical skills required to transform this data into meaningful information.

It is almost impossible for business managers to make sound strategic workforce decisions without the availability of useful outputs.

It is time to analyze, what is going on in your war room? In an electronic business world, the battle for talent will be won and lost even before the players take their position in the field. HCM is the most strategic management activity to take place within a company.

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