Unlocking workforce potential is critical for business success, writes Nelly Mohale, head of Decusatio Human Capital Solutions.
We are working in a more competitive and dynamic business environment than ever before, and unlocking the potential of your workforce has become more important than ever. With businesses changing at such a rapid pace, you need to know the strengths of your workforce to be able to tap into them when needed.
Firstly, understanding that your workforce is your human capital will change how you view and invest in them. Any investment you make into your business requires careful nurturing to optimise its potential and your human capital investment is no different.
Human capital refers to the skills, knowledge, and abilities of an organisation’s employees, which, if utilised effectively, can drive sustainable growth and success for the business.
Here are the three essential things that you should consider to unlock the potential of your workforce and realise a return on your human capital investment.
Have a human capital strategy that aligns with your business strategy
Are your efforts to unlock your workforce’s potential part of a greater business strategy or are you just winging it? Before you look for ways to unlock the potential of your workforce, you need to build a comprehensive plan that outlines how you will manage your employees along with their skill sets and knowledge to meet your business goals and objectives.
A well-designed human capital strategy can help you to locate, nurture and retain the best talent, while creating a positive work environment and optimising employee performance. Without a clear strategy, your efforts to unlock the potential of your workforce will be ineffective, as you will not actively be aligning your business strategy with the human capital needed to realise it effectively and efficiently.
Invest in the professional development of your employees
One of the key factors of human capital management is employee training and development. In the modern job market, conditions are constantly shifting and becoming more competitive. A robust training and development strategy offers, among many other benefits, an organic approach in boosting employee engagement and retention rates, as well as fostering creative thinking, which gives your business an advantage over competitors.
ClearCompany found that 74 percent of employees say that a lack of professional development is preventing them from reaching their full potential.
You cannot realise the best potential of your workforce without making sure that your employees have the most up-to-date skills and abilities to excel in their positions.
Employee wellbeing is key to retention
Considering the wellbeing of your employees is crucial to ensuring that their potential is realised. The wellbeing of employees encompasses everything from physical, mental/emotional, social and physical to career wellbeing. It is essential to provide your employees with a supportive work environment, opportunities for work-life balance, and access to resources for their overall wellbeing.
Employee retention and productivity are heavily influenced by your ability to take care of your employees. Paychex and Future Workplace conducted a study where 62 percent of the 603 permanent employees who participated revealed that wellbeing is a key consideration when choosing an employer. When employees feel well supported in their work environment, they are more productive, engaged, willing to work beyond the call of duty and willing to stay with their employer longer.
Unlocking the potential of your workforce is critical for achieving business success. By having a human capital strategy in place, investing in employee development, and prioritising employee wellbeing, you can unlock the full potential of your workforce in order to gain competitive advantage and drive sustainable growth and success for your business despite the constant changes and challenges we are facing.