Factors Affecting Human Capital Management
There are number of things that can affect human capital management. Human capital management is essentially human resources management that has been taken to another level. Where human resources just concentrated on employees working towards a common goal and maintaining a good working environment, human capital management concentrates more on the value aspect of each employee, managing them as human assets and what they mean for a certain company. The people that work for a company are what make it a success; there is no one human beings that can create a multi-million-dollar corporation by themselves, but in order for a company to reach this goal, all employees need to work towards a common goal.
It is true that a human being will only put time and effort into a thing if he believes that he will get something out of it. This is the same at any company. In order for your employees to work for the greater good of your company, you need to create a system whereby there is at least some type of financial incentive. Nowadays a simple salary is not enough encouragement for an employee to work harder and more efficient. Bonuses and salary increases are more of an incentive and although this is not always possible, there are other ways to offer incentives to your staff.
Profit shares or shares in the company are one way in which companies can off incentives. Besides salary and incentives, there are a number of other factors that can also influence human capital management. Work environment is a major factor that influences HCM. If an employee is not happy in their working environment, the chances that they are going to work harder and more efficient is less than if they are happy.
Statistics show that a mood created by one employee at the beginning of a day can affect at least 80 percent of all employees that come in contact with that person and although it is not easy or even possible to keep everyone happy there are little things that you can do to keep your employees happy