Businesses Need to Manage People Carefully
In the last two decades, turbulent changes in the business environment has reignited a focus on creativity. Quite rightly so, however, this “creativity”, doesn’t always get channelled into the right department.
Typically, businesses come up with ways to creatively cut their overhead costs without really focusing on one area that can really make a difference. In this article, we would like to throw in one caveat.
To negate the risks of growing a business, usually, businesses carelessly manage their most valuable capital. On the flip side, the area that gets the most attention is one that is easily accessible for most businesses. Today, the supply of capital and the ease of borrowing come with relatively low costs. Capital abundance, however, is not always the right answer.
One telling argument against this is; how many employees do you see as difference makers in your company?
Businesses often view capital as the resource that needs to be carefully managed, though less so their human capital. This problem, however, cannot be solved with a conventional way of thinking, for it is rooted in the structure of any business because human capital is difficult to manage and measure. Moreover, we value and reward good management of financial capital.
In the future, not only do businesses need to be able to provide the best package for talented employees, but they also need to step up in order to compete with others to acquire the best talents.
Dynamic individuals require dynamic working arrangements. As humans, our genius doesn’t always kick into gear when we want it to. Therefore, to be able to acquire the best talents that can make a difference, businesses need to manage their human capital just as carefully as they manage their finances, if not more carefully. In other words, human capital is the scarcest resource for any business.
The more businesses can help their employees balance their work-life demands, the more attractive they become. Evidently, human capital is the lifeblood of any business and it is time to weave creativity and flexibility into your future business strategy.
When your talents have the flexibility to meet the demands of their career and adequately attend to things they identify as priorities outside of work, this makes for a conducive environment for them to thrive.
Ideally, a flexible business that is agile enough to respond to the frantic client demands and at the same time, provides its employees control and influence over their own quality of life, should be the human capital model of the future. At The Codian, we firmly believe, any growth path can only be realised after you imagine how it can be done.
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