Human Capital
Human Capital Are employees your most important resource or not? Employees are your most expensive capital investment. Just like any other capital investment they have production limits, specifications, installation costs, and, most importantly, maintenance costs. If you’re a manufacturer and you purchase a piece of equipment that is supposed to produce 100 widgets an hour, you’ll do whatever you need to do to ensure it produces 100 widgets an hour or more. Human capital is no different. When you hire an employee, you purchase the equipment. Employees need to be on-boarded, trained, integrated into your operations, coached, and guided properly. Some employers think they don’t need to do things that keep employees happy. Happy employees are productive employees, productive employees are efficient employees, and productive and happy employees make you money. Do you know the following about your most productive capital investment? · How long do your employees work each week? · What are the advantages of having each employee? · Each employee is rated to produce a certain amount of production each week. What does each employee produce for you? · If you changed how you utilized an employee would he or she be more productive? How much more productive? · What incentives exist within the company and what behavior do they produce? · Are your employees self-motivated and looking for ways to improve the business or do they just do their job and go home? Why? If your employees really are your most valuable asset, do you treat them that way? What would you sacrifice to ensure they are at their productive peak? Do your actions match your words? It’s easier than you think. The Grange is packed with ways of ensuring your most valuable capital investment gives you the best possible return. It’s time to improve your ROI.
