Every business, large or small, should make an effort at improving human capital — after all, employees are a business owner's most important asset! Your company can be successful only when you understand the importance and necessity of organizing and managing the use of human capital. As a business owner, you need to ensure that proper training programs for employees are in place, so that they have the required skills. As a small business owner, your job is to make every employee feel that his or her service is of great value to the company.
Ways to Improve Human Capital
A common method used by various companies for improving human capital is to hire intelligent students (interns) from developing countries like China and India. If you do not want to follow this method, then the employees that you do hire should have the educational qualifications necessary for their respective positions. The essence of human capital is sociability, knowledge and the way an employee uses the skills that have been taught to them.
Education and Training
In order to make the best use of talent, you need to provide constant training to your employees, keeping in mind the necessity of updating the skills required by your employees in order for your business to successfully compete in the business world. When you train an employee, you increase his or her productivity and efficiency – and as a result the company gets a lot of benefits in terms of profit. You will have to keep monitoring employee performance by conducting periodic reviews.
But perhaps the best way to improve your company's human capital is by hiring qualified people in the first place!
