Human Capital

As HR or Human Capital activities are hard to quantify, it is a challenge to determine how they add value to organisations. Some suggestions include

- quality of senior management (executive remuneration; succession planning; senior management turn-over; employee feedback, including morale)

- performance management (application of performance management processes; rewards/ recognition on performance; employee feedback including morale; work ethic)

- investing in talent (training employees; employee feedback including morale)

- productivity (revenue per employee; HR effectiveness)

- employee engagement (percentage of engaged employees)

"...companies with strong human capital numbers pay their executives differently, use incentives and rewards, set strategic goals, have distinctive leaders and have more engaged and confident employees than those with inferior growth records...... companies with double-digit growth have high engagement levels...... 20 percent higher than those with a single digit growth..."

Fabricuis as quoted by Brad Hatch, 2005

Furthermore, it is claimed that engaged workers are the key to competitiveness and sustainable business structure.

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