Human Capital management makes the best possible use of skills and experiences of employees and motivates them to deliver their level best. Human Capital management helps in extracting the best out of individuals, eventually benefitting the organization and yielding higher profits.

Common Resource Pool Model

Human Capital Management helps human resource professionals to hire the best available talent.

Common resource pool constitutes group of individuals ready to take up new opportunities. Common resource pool includes a pool of talent from diverse backgrounds, multi skills and varied experiences.

In simpler words, Common resource Pool is a group of people from which human resource professionals hire employees for an organization. It is the responsibility of human resource professionals to recruit employees as per the requirement in the organization from the common resource pool often abbreviated as CRP. Common resource pool helps in the staffing of teams.

According to common resource pool model, human resource representatives are assigned the responsibility of hiring the right talent from common resource pool. You need to find out who would be the best fit among the available resources for your organization. Job responsibilities should be clearly defined. Analyze the background, past experience, educational qualification, interests, before hiring an individual. Do not forget to check his/her credibility in the past organizations.

Human resource professionals must discuss with the senior management to understand as to what they expect from their team members. Try to read their minds. Do not hire just for the sake of it. It will land you in trouble later on. You are the one who would be held responsible.

Resource Pool accumulates human capital experiences, skills, as well as their roles in line with the needs of organization. Resource pool refers to an exhaustive database of human capital with their educational qualifications, past experiences, specializations, expertise for human resource professionals to do hiring for the organization.

Common resource pool minimizes the chances of duplication thus making the work of individuals representing human resource vertical much easier. Resource pools also help human resource professionals in identifying resources or skills that are in less numbers and for which supply must increase.

Common resource pools not only include full time employees but also employees who are on contracts, part timers, freelancers and so on. Whether a full time employee or a freelancer should be hired, depends on the project and the size of organization.

Full Time Employees – Full time employees are individuals who work for a minimum number of hours as defined by the policies of the organization.

A full time employee enjoys the following benefits:

• Annual leaves
• Casual leaves
• Medical Leaves
• Insurance policies

Part timers – Part timers are individuals who work for only few hours less than the standard time.

Freelancers – A freelancer is an individual who has the liberty to choose his working hours as per his/her own convenience. He is not committed to a particular organization.

Common resource pool model makes, managers more efficient as compared to team members. Common resource pool model highlights the importance of skills, knowledge and background of human capital who are the key drivers of projects.

The present times are characterized by an oversupply of everything related to the job market and the presence of so much capital at the disposal of companies. On the other hand, the physical resources needed like oil, gas, minerals, and water are in short supply. This means that a paradox is created where there are more people than resources and more capital than avenues for productive investment. This “double whammy” would hit the current generation hard, as they have to contend with the paradox of too much labor and at the same time too few physical resources.

A situation where there is stagnation in the job market and inflation in the price increase is known as stagflation. While the hitherto protected and insulated economies of the west are now undergoing a painful transition to high unemployment and low growth, the Eastern world is realizing that the good times are over and hence, the return to the dizzyingly high rates of growth and plentiful employment is impossible. This is leading to a situation where the present generation is becoming frustrated and showing their anger through mass protests and strikes on just about everything that bothers them.

The Perils of Oversupply

Oversupply of labor means that when employers advertise for jobs, there is more than hundred times the number of applicants for every vacancy. This means that job seekers have to contend with low paying jobs far lesser in pay and working style than what they had studied. Indeed, some media reports have shown that engineering graduates in India are working in grocery stores and in menial jobs that do not have any connection whatsoever with their education.

Many youth in the west as well as the east are delaying marriage, having kids in case they are married, and are generally not leaving home and staying their parents as they can save on living expenses this way. This situation is a recipe for disaster as can be seen from the events of the Arab Spring and the Occupy movement where disgruntled and disaffected youth took to protests and social disorder as a means of expressing their anger.

Further, with so few jobs and so much capital at their disposal, companies are putting off hiring and instead, deploying their liquidity in the stock market and other forms of speculation that do not result in net job creation and only serve to exist as a highly lucrative source of income.

Speculation instead of Job Creation

This is the reason we see the stock markets rise even though the economy is in doldrums. This is also the reason we see the capital drifting towards speculation instead of productive employment. Further, investment needs resources that are dwindling and hence, corporates have realized it is better to speculate rather than invest in scarce resources. Even those companies that need resources are either putting off their expansion plans or lessening their output from the existing resource base.

Therefore, the paradox of oversupply of capital and labor and at the same time the dwindling resources means that there is no net value adding economic activity wherein the only growth is from the services sector that does not need any of these factors of production. This can be seen from the way in which the jobs that are being created are from the services sector where the fresh graduates are flocking to for employment.

Of course, as mentioned earlier, services can mean anything from high-end finance and IT to low end hair salons and retail stores and hence, it is important to note that fresh graduates be realistic about their chances. Instead of building castles in the air, they must have their feet firmly on the ground and hence, must apply for employment accordingly.

Every employee should strive hard to increase his/her value in the organization. One should contribute his/her level best to accomplish goals and objectives of the organization. Don’t just treat your organization as a mere source of earning money.

Remember there is no age limit for education. One can constantly keep on upgrading his skills. Register yourself for various online or distance learning courses, something you can pursue along with your job.

Continually seeking education makes an employee aware of the latest developments and opens his/her mind up to new ideas. Search for new courses which would help you contribute more towards your organization. Don’t register yourself for any course just for the sake of adding degrees to your resume.

Some amount of research is necessary before you get yourself enrolled in any course. Do not forget to check the credibility of the course or for that matter the authenticity of the degree. Discuss with your superiors. They will be able to guide you. Education goes a long way in preparing you to face new challenges in professional life. Strive hard to keep yourself abreast with the latest technologies and progresses in industry.

Don’t just restrict yourself to a nine to five job. There is no point limiting yourself to predefined jobs or roles. Try to develop new skills that will help you with your overall performance. Be flexible and open to changes and new leanings. Being rigid will lead you nowhere. An employee should never bring his/her ego to work.

Paul was a fifty years old employee working with Organization A. He was not much familiar with internet and computers.Drafing a business mail and maintaining data in Excel was a big challenge for him.

Peter, on the other hand was proficient in internet and all other functions of computer. He was appreciated by his co workers for his contribution towards the various processes of the organization.

Paul, being elder to Peter was reluctant to sit with him and brush up on his skills. His ego never allowed him to upgrade his knowledge. Paul really found difficult to cope up with the changing times and eventually lost his job.

It is absolutely okay if you are not aware of something. There is nothing to be felt ashamed of. Discuss with your colleagues.

Try to get involved as much as you can. A multitalented employee always performs better in situations of crisis than someone who just works for himself/herself and not for organization.

An employee should always keep his eyes and ears open. Be alert and try your level best to grab new information and learnings.Believe me it will help you later and make you a dependable resource. Try to work in teams.

Information sharing also increases the efficiency of employees and eventually human capital. Sit with your team on an open forum and brainstorm new ideas and concepts. Knowledge is something which can never be stolen.

Volunteer for various training and skill development activities. Don’t run away from trainings. Don’t forget your organization is investing its time and resources in arranging training programs to benefit you. Don’t sit with a closed mind in trainings and just for the sake of marking your attendance. Interact with the trainer and try to learn and discover new things.

Don’t attend office just to earn your salary. Make it a point to do something new every day. Work never becomes a burden for employees who believe in experimenting and doing new things. Read a lot. Pick up magazines, newsletters, journals which will help you increase your knowledge. Don’t wait for someone else to push you for things. Start it RIGHT NOW!

Start your day with a smile. It will help you contribute more towards your organization.

1. Constant Trainings

   It is rightly said that the success and failure of any organization depends on its employees. Every employee in his/her own way contributes to the development of organization. One of the major responsibilities of a human resource professional is to source the right talent for the organization. Recruit the right person for the right role. Job mismatch leads to confusions and eventually decreases overall productivity and output.

   Orienting new employees to their jobs must not be neglected. Mere piles of documents and employee handbooks are not sufficient to welcome a new employee. Boring and unrealistic employee induction programs often leave employees in a state of dilemma. Design a suitable induction program which not only acquaints a new individual with the systems, policies of the organization but also makes him feel comfortable within the system.

   It is essential for every organization to upgrade the skills of its employees for them to cope well with the changing times. Employees must be trained from time to time for them to utilize their knowledge to the fullest when required and become indispensable resource for their organization.

   Human resource professionals or training managers must not design training programs just for the sake of it. Understand how your training program would benefit the employees?

   Management can also sponsor the education of their employees for them to sharpen their skills and increase human capital. Realistic training programs increase efficiency of an employee, who further increases the productivity of organization.

2. Monitoring Performance

   Monitoring performance of employees also increases human capital. Understand what your employees are upto? Managers must take regular feedbacks from their subordinates. Introduce the concept of online weekly report system, where each employee would have his/her own login ID and password.

   At the end of every week, employees should be directed to fill the online weekly report which would automatically go to their reporting bosses for them to evaluate their performances and write comments and feedbacks. This way superiors can also keep a track on their employees’ progress.

3. Direct Communication

   Subordinates must be able to walk up to their manager’s cabin in case of queries. The “Hitler Approach” does not work now a days. Problems must be discussed on an open forum for everyone to give their suggestions, feedbacks and ideas. Do not ignore even the minutest problem. Any problem left unattended may lead to a serious situation later on. Each employee should have a say in major decisions of the company. This way employees feel attached towards the management as well as organization. You never know when someone might come up with a brilliant idea.

4. Defined Job Responsibilities

   Job responsibilities of employees must be clearly defined to expect the best out of them. Key responsibility areas must be designed in line with an individual’s past work experience, educational qualification and area of interest. KRAs ought to reflect essential functions of one’s job.

5. Motivation

   Employees must be motivated from time to time for them to work harder even next time and for others to draw inspiration from them. The talents of good employees must be recognized either by offering them lucrative incentives or giving them a decent salary hike.

Employees must develop a sense of attachment and loyalty towards the organization.

From where do you think attachment comes from? Is it only money? The answer is NO. Money could be one of the factors.

A feeling of loyalty towards an organization cannot develop in just one or two days. It takes time for employees to inculcate a sense of pride in working for their organization.

“My name is Tom and I am really proud to represent my organization – Peter Publications Pvt Ltd” This should be the feeling for one’s organization.

Human Capital management plays an imperative role in honing the skills of employees and making them reliable resources. Human Capital management helps in hiring the right candidate for the right job, properly orienting him to the organization and constantly upgrading his/her existing knowledge.

An organization needs to invest its time and energy in its employees through various internal and external trainings, team building exercises (activities which bring out the best in employees) to expect dedication, sincerity, hardwork and loyalty in return.

Organizations are benefitted when specialized and already experienced people are hired for the right job. In such cases, an organization does not need to spend much of its time in training an employee. Employees with prior in depth knowledge can take charge immediately, without wasting time of superiors or senior management.

Unique Skill Set model often abbreviated as USS Model highlights the importance of hiring skilled (already trained) individuals for organizations.

According to Unique Skill Set model, unique skills set employees boast of unique skills and in-depth knowledge and understanding of the business and overall industry. Unique skills set staff come with relevant experiences and skill sets making them more efficient and reliable than employees who need to be trained from the initial levels.

Unique skill set model reduces the cost of cross functional trainings as employees are already trained and ready for their respective roles. Unique skills set employees possess unique skills and knowledge and thus can contribute effectively towards the functioning of organizations from the very beginning. They are in a position to come up with innovative ideas and solutions to make the systems better and efficient. Unique skills set employees are aware of their roles and responsibilities, strategies to be made for the organization and how to implement the same in the right direction to achieve the goals and objectives.

Unique skills set employees are more efficient and team members determine what actions should be taken and in what direction. Training is not much required in USS Model.

Retention of talented resources with less capital resource is one of the hurdles in unique skill set model. Organizations find it difficult to retain high performing employees as they have a tendency to move on for better opportunities. Aging of talented employees is another problem in unique skill set model.

Human Capital management includes the following:

• Recruiting the best available talent
• Career development Plans for employees
• Coaching and mentoring employees
• Motivate employees to deliver their level best
• Developing performance management strategies

Strategic human capital management refers to alignment of human capital strategies with the goals, objectives, mission of an organization through extensive planning, analysis and management of human capital plans.

Human Capital Planning helps an organization to design human capital policies, strategies, programs to increase efficiency of employees and help them accomplish goals and objectives of organization. Implementation of human capital plan helps human resource professionals to hire the right candidate, train him, upgrade his/her skills, manage him/her and also retain an employee.

Let us go through key components of a strategic human capital plan:

• Clarity in Direction
• Clarity in human capital goals
• Strategies/Policies to accomplish already defined goals and objectives
• A foolproof implementation Plan
• An accountability system

Let us go through each of the component in detail:

Clarity in Direction

This component involves the complete understanding of an organization. It is essential to understand the budgetary constraints, vision of an organization, requirements and expectations of stakeholders, customers, senior management, needs of current workforce to achieve a clear strategic direction.

Discuss and collect data from stakeholders, customers, employees to understand their needs and expectations. It will help you define the vision of an organization and its workforce. Try to analyze the current state of employees and where they would exactly like to see themselves and organization two years down the line. Such an analysis will help you understand the gaps in the system.

Clarity in Human Capital Goals

Understanding the gap between current and desired state helps in developing human capital goals which would not only increase the overall efficiency of employees but also make them feel attached towards the organization.

Set human capital goals such as:

• Only the best talent should be hired.
• Developing realistic induction programs for new employees.
• Continuously develop skills of workforce in line with the requirements.
• Retaining hard working and dedicated employees

Strategies/Policies to Accomplish Already Defined Goals and Objectives

The next step once goals and objectives are set is to design strategies and policies to achieve the same. Human resource professionals should design long term plans to ensure employees are satisfied with their jobs and deliver their level best.

Delegate responsibilities to employees as per their skills, educational qualification, expertise and interest areas. Assign a team leader. Team Managers should take proper feedbacks from team members to monitor their performances. Know what your team members are upto? Managers must interact with their team members on a regular basis to understand their expectations from the system and also to keep a track on their growth in the organization.

Implementation Plan

Implementation Plan includes the actions and steps required to implement human capital plans.

Successful implementation plans include:

• Allocating a responsible resource for the same
• Setting a timeframe/deadline for implementing human capital plans
• Allocating budgets for the same

Accountability System

No process or plan is successful unless and until it is managed well. It is essential to keep a track. Accountability system involves measuring the success and failure of an implemented plan. It also helps you to analyze the loopholes in the plan (if any) and ways to rectify the same.

Human Capital management refers to the management of employees, hiring right employees, training them, upgrading their skills, utilizing their knowledge to the fullest, eventually benefitting the organization.

Human management refers to managing employees for them to contribute effectively towards the organization.

Let us go through the benefits of human capital management:

Human capital management helps in extracting the best out of employees. It also plays an instrumental role in increasing the efficiency of employees, making them an indispensable resource for the organization.

Human Capital Management enables the human resource professionals to hire the right candidate for the right role. Talent Acquisition is one of the most crucial functions of an individual representing human resource vertical.

Remember one wrong employee can lead to problems, confusions within the system. Superiors and management do not have to spend much of their time and energy in training someone who already is aware of his roles and responsibilities.

Human Capital Management is beneficial in recruiting the right talent for the organization. Hire employees who really deserve to be in the system. The process of Human Capital management involves hiring the right candidate; orienting him to the system and making him comfortable for him to deliver his/her level best. It is generally observed that boring induction programs are a mere waste of time and energy.

Human resource professionals should not design induction programs just because protocol demands the same. Induction programs should be interactive sessions where the trainer should acquaint the new employee with the policies of the organization. Human resource professionals should act as a bridge between senior management and employees.

Human Capital management enables free flow of information between superiors and subordinates. Employees have an easy access to the senior management and hence there is no room for confusion or misunderstandings. Half of the problems evaporate when colleagues discuss matters amongst themselves.

Trainings and skill development activities are essential for upgrading the existing knowledge of employees. Training program increases the efficiency of employees and eventually increases the overall productivity of organization. It is essential for every employee to keep himself/herself abreast with the latest developments in his/her field. Human Capital management makes an employee self sufficient. It enables employees to adapt to changing situations easily. A well trained employee can bring better productivity than someone who is not trained.

The performances of employees must be evaluated from time to time. Superiors ought to keep a track on subordinate’s work. Proper feedback is essential. Human Capital management helps in monitoring employee’s performance. Special online reporting systems help senior management to have a direct access on the work of their juniors. Employees are aware as to what is expected out of them.

Human Capital Management highlights the importance of soft skills and personality development for employees. An employee who can speak well is always considered as a trouble shooter by his fellow workers. Do not hire someone who has poor communication skills. Someone with average communication skills can still be considered.

Human Capital management helps the employees to improve in areas where they feel they are lacking. It not only benefits the employees but also the entire organization.

Human Capital Management Drivers act as catalysts for an effective human resource management.

Human capital management drivers fall into five major categories:

1. Human Capital Management (HCM) Driver 1 – Leadership Practices

   HCM Practices

   Communication: Employees must be treated well for them to develop a feeling of attachment and loyalty towards the organization. Managers must understand that their role is not just to sit in closed cabins and impose ideas on others. They ought to communicate well with their subordinates. Employees must have an easy access to the senior management. Communication from management to employees also known as Top down communication is essential for the employees to be aware of their goals and objectives and for them to know what is expected out of them.

   Inclusiveness: Management ought to sit with employees on a common platform to invite suggestions and feedbacks from them.

   Supervision: Senior executives and management must reduce the various levels of hierarchy between them and employees’. Management must interact and motivate the employees from time to time for them to give their level best.

   Leadership: Senior executives should support, lead and influence the workforce so that they contribute effectively towards the organization.

2. HCM Driver 2 – Employee Engagement

   HCM Practice

   Key Responsibility Areas: Key responsibility areas of an individual should be designed in line with his education, skills, expertise, experience and also area of interest. This way, work never becomes a burden for him.

   Commitment: Outstanding efforts of employees must be acknowledged for them to feel motivated and work harder even next time. Employees performing well ought to be suitably rewarded and appreciated in front of others.

   Time: Time management ensures that no employee is overburdened. Responsibilities must be equally shared among employees.

   Evaluation: Employee engagement must be evaluated from time to time by the top management.

3. HCM Driver 3 – Knowledge Accessibility

   HCM Practice

   Information Availability: Employees must have an easy access to all relevant information required to perform their duties. Organizations must organize various training programs (In house Trainings or Out sourced trainings) to constantly upgrade the existing skills of employees and acquaint them with new learnings.

   Team Work: Employees must be motivated to work in teams rather than working alone.

   Information Sharing: Encourage employees to share information with each other.

4. Human Capital Management (HCM) Driver 4 – Workforce Optimization

   Human Capital Management (HCM) Practice

   Work processes: Senior management must define work processes of employees well for maximum productivity.

   Working Conditions: An organization needs to provide excellent working conditions to the employees to expect the best out of them.

   Accountability: Individuals must be held accountable for their work. Get a commitment from employees and nothing like it, if everything is in writing.

   Hiring: Individuals responsible for talent acquisition must ensure that they hire the right candidate for the right role. Design a strong induction program for all the newly joined employees.

   Performance Management: Employee’s performance needs to be strongly monitored and managed.

5. Human Capital Management (HCM) driver 5 – Learning Capacity

   HCM Practice

   Innovation: New ideas should be welcome. Employees must be encouraged to come out with new and innovative ideas which might benefit the organization.

   Training: Trainings must be practical/relevant and designed to sharpen the skills of employees. Do not design training programs just for the sake of it. They must benefit the employees.

   Career Development: Employees must be aware of their growth plan in the organization.

   Learnings: New learnings should be valued by all in the organization.

Who do you think are the most valuable resource in an organization ?

Employees. Individuals who spend maximum part of their day contributing towards the success of an organization are its most crucial resource. Employees can either make or break an organization, truly making them an organization’s lifeline.

Human Capital Management is essential for hiring, managing, training and retaining talented and high performing employees.

Human Capital management plays an important role in the recruitment process. It ensures that human resource professionals hire individuals who really deserve to be in the organization. Recruiting the right talent is of utmost importance. An individual who is not fit for a particular role will not be able to contribute much in the long run.

Talent acquisition is one of the most crucial responsibilities of human resource professionals, often neglected in most organizations. Do not hire someone just because you need to fill a vacant position or your superiors have asked you to do so. Analyze the background of an individual thoroughly. Try to find out why someone really wants to join your organization? Remember money should not be the only criterion why someone wants to change and join a new organization. An individual who has been assigned the role of acquiring new talents should not forget to check an applicant’s past experience, interests, professional qualification and reasons for changing previous job. If you really like someone, try to do some reference check as well. Do discuss with the applicant before calling up his previous organization or boss, else it might land him/her in trouble.

Human Capital management plays an important role in orienting a new employee to the system. Boring and meaningless induction programs lead to confusions and an employee eventually loses interest in the organization. Do not load someone with unnecessary information, the very first day he steps into the organization. Believe me, he will run away. Make him feel comfortable. Ask him/her not to bring lunch from home. Order lunch from outside and ask all his team members to have lunch together. Such small initiatives go a long way in breaking ice among team members.

It is essential for employees to upgrade their knowledge with time to cope up with the changing situations. Human Capital Management helps in training the employees and making them indispensable resource for the organization. Motivate employees to take up special courses or online programs which would help them in their job. Employees who do not brush up on their skills from time to time find it difficult to survive in the long run. Inculcate the habit of reading. Internet is also one of the good options to keep oneself abreast with the latest developments.

Human Capital management plays an important role in increasing the efficiency of employees. Individuals are in a position to contribute more towards the system, eventually increasing the overall productivity of the organization.

To conclude, human capital management is important for:

• Hiring the right talent
• Orienting him/her to the organization
• Making a new employee feel comfortable
• Training employees in order to constantly upgrade their skills
• Retaining employees
• Making employees self sufficient and prepare them for adverse conditions

Human Capital management helps in developing skills of employees which help them stand apart from the rest.

In a layman’s language hybrid model of human capital management includes diversified human capital.

Hybrid model includes front office staff, customer care representatives, sales representatives and so on. This model does not include employees with unique skills set but employees who have a generalist profile and are multitalented. Such employees can perform various functions at a single time and thus come up with innovative ideas for the organization.

Hybrid model employees do not require extensive training. Light trainings can solve the purpose. Employees under hybrid model do not have to perform specialized tasks and thus do not require specialized training programs.

A customer care executive does not have to perform complex duties in his/her day to day operations. In the same way a front office executive does not need to develop specialized skillsets. Lighter trainings are useful for them and can make them more efficient for them to contribute towards the functioning of organization.

Hybrid model of human capital management lacks staff members with specialized experiences or unique skills and knowledge. One can find employees who are generalists and thus lack in – depth business knowledge. Such employees would not be able to participate in critical business decisions due to the lack of thorough work knowledge.

Talent acquisition is much simpler in hybrid model of human capital management. Interview processes and formalities are not critical as in unique skill set model. Human resource professionals need to hire individuals with a generalists profile, who do not have much say in the organization’s major decisions, policy formulations or goal and objective setting. Hybrid model staff can be hired in just one or two discussions only. You do not need an elaborate questionnaire to hire a customer care executive or a front office staff.

Hybrid model of human capital management reduces the need of trainings. Such a model also lacks good talented resource who can take up the responsibility of guiding his/her team members. In this model there is hardly any qualified, high ranked staff member who can set an example for other team members or lead them. You would hardly find someone who is capable of being a leader or a team member. This is one of the major drawbacks of hybrid model of human capital management.

Following steps should be followed in hybrid model:

1. Identify the skills, knowledge your organization has and identify the areas where there is lack of skill portfolio.

2. Identify the human capital with skills and knowledge for which there is a high demand but the supply is low.

3. Find out the expertise of employees. Talk to them and find out in which all areas they can contribute maximum.

   A human resource professional ought to forecast knowledge, skills or expertise his/her organization will need say five years or ten years down the line. Try to analyze the projects in the pipeline.

4. Prepare recruitment models and refill strategies.

5. Try to design training programs to mentor the employees and upgrade their existing knowledge.

Key Benefits of Hybrid Model

• Easy to train the employees
• Effective communication between team members and team managers
• Flexibility is more in hybrid model of human capital management
• Centralization of processes and functions
• Hybrid model achieves significant operational improvements