Human resource management

Human Resource Management
Managing Human Capital
Managing Talent
One of the major problems faced by many companies in today’s fast paced market is how to
grasp and retain labor that is of the best caliber. In the highly competitive business
environment, the best talent quickly gets swept up by employers eager to strengthen the
quality and efficacy of their workers. That’s why it is important for a company to stay on track
by utilizing the best talent management programs available. Indeed, a successful venture will
place a high priority on the organization of labor pools and the effective regulation of human
capital resources. Not only will the company pick up the right people to work for it, but also it
will engender a sense of loyalty among its employees...
The Costs of Human Resources Management
In a company with thousands of employees, it is easy to lose track of the processing costs for,
say, a single time off request. But losing track doesn’t mean the cost just goes away, and
many business leaders would be appalled to find out how much money is chipped off their
bottom line every time a simple employee transaction – like a request for time off – goes
through. Even worse yet is that this type of cost (averaging nearly a hundred dollars per
request in large corporate settings) is practically a negligible sum when all of the other
human resources related costs are added up
Managing Human Talent

The Costs of Human Resource Management
In a company with thousands of employees, it is easy to lose track of the processing costs for,
say, a single time off request. But losing track doesn’t mean the cost just goes away, and
many human resource management professionals would be appalled to find out how much
money is chipped off their bottom line every time a simple employee transaction – like a
request for time off – goes through. This type of cost is practically a negligible sum when all of
the other employee-related costs are added up. Take a scenario (and it is probably true for
your company) in which a time off request costs a company ninety five dollars, and yearly
expenditure on maintenance edges up to almost two thousand dollars. Now imagine, for a
moment, the additional expenses required to implement strategic decisions such as working to
make sure the company’s goals and those of the employees coincide, or even just how to
optimize worker satisfaction. Very quickly these costs become unimaginable, and that is
exactly the point. A company that is not equipped with the appropriate software for managing
its human resources is bound to lose out on profits just as much as productivity, simply
because there is no coherent database to produce definite results on the cost of human capital
management.
At a certain point it becomes inevitable that a company seeking to maintain its competitive
edge will have to pay into an information processing system in order to manage its workforce.
After all is said and done, the investment will be a wise one. This is made all the more clear
when the employer recognizes that his or her workforce is the business’ most vital asset. The
way the technology works is truly amazing and, at the price of sounding a bit over exuberant,
it could be said that a good HCM program can more or less be equated to having the entire HR
department on line. What it does is create a platform that spans the entire enterprise so that
nothing is left unmanaged. It includes everything from running employee pay and benefits to
supervising employee responsibilities, new hires and talent development. Indeed, a Human
Resources management software system helps make the process more efficient and ultimately
proves to be very cost effective. Major organizations offering HCM services have already had
incredible success in turning around savings by reducing the cost of their HCM processes.
Instead of remaining committed to a few antiquated in-house programs and an overworked
Human Resources department, it is probably time to switch to HCM on line.
What’s left now is to figure out how a company goes about making the transition. Generally,
an organization providing HCM will provide a consultant to make sure that the process of
switching over goes as smoothly as possible. A major component of consultation involves
giving useful instruction and education to the staff that will be using the HCM services. The
other important aspect of the consultant’s services involves application customization so that
the HCM system's modular systems integrate across the board to provide a solution for the
enterprise's needs.
How to integrate HR Technology
within an HCM environment
Increasingly today, businesses are seeing the benefits of automating their systems of human
capital management. By rethinking their HR software, they are finding their Human Capital
Management systems are already light years beyond what they were in the decades prior to
the Internet. Yet there continues to be many companies lost in the archaic and mistake-prone
system of maintaining HR processes that are lack automation. The days when a company can
get by without integrating HCM technology are long past. Due to competition generated by the
increased efficiencies of the companies plugged into HCM technology, those who are not yet
“on-line” find that their revenues are being eaten up by the same costs that their competitors

are reinvesting to achieve an edge on their particular markets. Find out how your company
can integrate HR management software for increased productivity in the workforce
How to integrate HR Technology
within an HCM environment
Increasingly today, businesses are seeing the benefits of automating their systems of human
capital management. By rethinking their HR software, they are finding their Human Capital
Management systems are already light years beyond what they were in the decades prior to
the Internet. Yet there continues to be many companies lost in the archaic and mistake-prone
system of maintaining HR processes that are lack automation. The days when a company can
get by without integrating HCM technology are long past. Due to competition generated by the
increased efficiencies of the companies plugged into HCM technology, those who are not yet
“on-line” find that their revenues are being eaten up by the same costs that their competitors
are reinvesting to achieve an edge on their particular markets. Find out how your company
can integrate HR management software for increased productivity in the workforce.
Because of the high cost potential of managing the workforce for large – often times global –
corporations, on-line Human Capital Management can deliver significant savings. Indeed, as
mentioned above, having or not having these savings can make or break a company. But how,
exactly, does a company integrate its existing HR department with the new technology?
One of the foremost features to recognize in a Human Resources Mangement system is
that there are very distinct modules through which HCM is managed. These include everything
from employee pay and benefits administration to talent recruitment and the on-site training.
Even educational measures are necessary for developing a skilled workforce. Furthermore, the
crucial areas of Human Capital Management involve administering personnel, developing
competitive levels of organization, doing strategic planning of compensation and managing
outsourced workers. All of the areas of focus that are traditionally cared for by an HR
department are open to efficiency upgrades.
But since that has changed, the pool of companies that sell HCM technology is generally
comprised of those who specialize in one or another of the above mentioned fields, although
there are the enterprise level companies that offer complete solutions. Those companies are
PeopleSoft, SAP, and ADP.
Despite the fact that there is, to date, no provider that can boast of all these varied services,
each HR software solution provider is hungry to form alliances with other vendors so that
client HR departments truly benefit in the end. By joining forces, these HR technology retailers
can offer an integrated platform so that any buyer of the software is then given complete
access to a fully automated system of advanced HCM technology.
The process of integration can be tricky for some who are in the initial stages of revamping
their company’s entire system of managing the workforce. Indeed, many businesses are still at
the point where they need to lift a series of outdated employee management software
programs into the automated world of on-line service. A large number find that the systems
with which they worked devotedly for so long may need to be scrapped entirely. However,
there are significant savings created by a streamlined HCM system. Many providers of the
technology are happy to offer consultation and staff training in order to make sure that the on-
line HCM service is fully understood by the employees who will be operating it.
Maximizing Human Resource Management

In a corporate world wrought with scandal and threatened on all sides by an often times
uncertain economy, employers are compelled more than ever to make sure that they are
getting all that they can from their workforce. Adding to the urgency of the problem is the fact
that the optimization of a workforce is a far from simple procedure. Fortunately, however,
there are many benefits in making use of HR management theory, and business leaders
everywhere are achieving great results by turning these new concepts into a reality
Applicant Tracking

Maximizing Human Resources Management
In a corporate world wrought with scandal and threatened on all sides by an often times
uncertain economy, employers are compelled more than ever to make sure that they are
getting all that they can from their workforce. Adding to the urgency of the problem is the fact
that the optimization of a workforce is a far from simple procedure. Fortunately, however,
there are many benefits in making use of HR management theory, and business leaders
everywhere are achieving great results by turning these new concepts into a reality.
In the old days, the process of human resources was a relatively benign affair. Payroll and
benefits administration– and some employee recruitment – were primary items on the agenda
for the HR department. But a combination of improved technology and a push for workforce
optimization has convinced HR specialists into the new and innovative realm of human capital
management.
While HCM theory is molded around the age-old principle that the workforce is a company’s
fundamental asset, it strives to lay out a series of steps by which employers can actually turn
this idea into a reality, and thereby see positive results in areas like productivity, long term
employment and a constantly rising level of profit.
A major factor contributing to the shaky ground on which some businesses stand these days is
the generally low number of qualified job seekers at large in the labor market. Coupled with
the problem of increasingly high rates of employee turnover, business leaders are finding it
increasingly difficult to attract and retain the top talent necessary for their expected levels of
productivity.
That’s why one of the primary items on the list of crucial Human Capital Management goals
relates to making sure that employees actually care about the work they are doing. This not
only helps a company by increasing the level of output quality, but it encourages lengthy
terms of employment so that a core talent base can see a company through the important
evolutions it must undergo, especially in these times of uncertainty.
Another important way for an employer to capitalize on his or her workforce is by harnessing
the power of HR software technology. The opportunities for workforce improvement through
technology are limitless, but it is worth pointing out one of the excellent programs that can
really take off through a good HCM system.
Creating employee incentives is a crucial element of effective Human Resource Management.
Surprisingly, however, this field has a lot of room for error. It seems that the reason behind
this is largely based around the fact that employers more often than not find themselves in the
dark as to how to entice their top talent without decreasing ROI. In order to create a
comprehensive program for determining what levels of pay and benefits increases will work to
promote better performance, there are a myriad of factors to take into account.
HR Trends in the Global Economy
With globalization shrinking the world map on a daily basis, technology stepping ahead at a
rate that is difficult to keep up with and a work force that is often hard to recognize,
Human Resources Management (HRM) is in a state of great upheaval and constant change.
It is important to remember, however, that this dilemma is nothing new. For instance,

globalization as we know it today has been in the works for decades, and people have long
seen the need to adapt to the increasingly fluid labor pool, using the racing growth of
technological development to connect employers to the work force, rather than isolate them.
Human Resources Management
HR Trends in the Global Economy
With globalization shrinking the world map on a daily basis, technology stepping ahead at a
rate that is difficult to keep up with and a work force that is often hard to recognize,
Human Resources Management (HRM) is in a state of great upheaval and constant change.
It is important to remember, however, that this dilemma is nothing new. For instance,
globalization as we know it today has been in the works for decades, and people have long
seen the need to adapt to the increasingly fluid labor pool, using the racing growth of
technological development to connect employers to the work force, rather than isolate them.
Still, the speed at which things are changing leaves many at a loss, providing Human Resource
Management with a great opportunity to step in and lead the way – all it takes is a positive
attitude and the ability to sail through uncharted waters.
One of the biggest temptations for North American businesses today is to send jobs overseas.
With recent university graduates in developing nations earning wages anywhere from a fifth to
a tenth of an American worker, all kinds of work can be sent out at incredibly cheap rates.
Such jobs include outsourcing call centers, credit card processing, scanning of medical
records-anything that has a set of simple instructions that an employee can repeatedly follow
throughout the work shift. This is the direct product of the gift of technology. The
interconnectedness provided by the Internet has made it possible to decentralize the
processing of information, and has provided access to an entire world of workers.
Outsourcing Human Resources
Indeed, there is no shortage of such workers, as India and China - the population boomers -
lead the way for American outsourcing. In addition, cheap labor pool abound in the former
Soviet Union, South and Central America, and the Philippines. With such an abundance of
worker resources opening up to the market, those involved in the management of Human
Resources are struggling to stay ahead. If it succeeds in connecting workers with employers in
a way that is beneficial to both parties, HRM could be one of the foremost beneficiaries of
globalization.
For many employers, the cheap labor pool provided by globalization has finally offered to
make their wildest dreams come true. Profit margins have the potential to soar as wages are
cut dramatically, worker benefits are stripped and stringent U.S. labor laws do not have to be
adhered to. But many are finding out that overseas jobs aren’t turning out to be as profitable
as expected. On top of this, it should be remembered that out of all the businesses that
attempt to start up overseas, about half of them do not survive. While many proponents of
sending jobs overseas will confidently herald the unheard of increases in profit, they will do
little to warn of the rates of failure associated with this type of business maneuver
But why can off shoring be so treacherously misleading? The problem, in a nutshell, is one of
bad calculation. In an increasingly unpredictable market, if a company does not effectively
map out a strategy of how to account for the common problems that overseas jobs bring with
them, they are bound to shipwreck. Unfortunately, however, many companies are completely
unaware of what they are to expect from pooling labor abroad.
For example, an overconfident executive who looked forward to cutting costs by up two three
quarters of what he would have been paying for U.S. labor, was woefully surprised to find a
50% rate of turnover among the employees and an irreversible lost edge on labor competition.

If he had developed a more solid business plan, taking better care of his employees and
preventing such a high turnover, he most likely could have successfully surpassed one third
savings without endangering his endeavor and losing the off shore setup entirely. If a
company invests heavily in onsite human resource management and training and allows time
for the establishment of a cohesive and secure setup, the chances of failure are greatly
reduced. Perhaps the heady fantasy of labor obtained practically for free has to be remitted by
overzealous executives so that a solid foundation can be put down and tangible savings can be
experienced. Ultimately, profit increases are very likely, but exporting jobs must not involve
abandoning a healthy dose of reality.
What outsourcing does to domestic labor is a very complex problem for Human Resource
Management. Workforce planning has always been an in-depth process of statistically
determining the age and skill factors of a given labor potentiality. With globalization in the
mix, the data field becomes much larger. The HRM statistician needs to balance the skills and
wage requirements of a U.S. college graduate against those of a worker from abroad, and
when choosing one over the other, the trade offs are significant. For instance, while many
companies choose to have telephone operators with limited English skills in India and Pakistan
receive questions from American customers, the rate of customer satisfaction drops. With high
rates of turnover for these foreign operators, the level of satisfaction for American customers
does not auger improvement. Still, however, many companies choose to continue with foreign
labor, experiencing a certain level of profitability regardless of various blemishes.
One of the major realities facing labor in this country is the rapid decrease in the salary and
benefits expectations a U.S. worker can have while going into the job market. With a vastly
increased labor pool to compete against, the U.S. worker must be prepared to develop and
hone skills that otherwise might not be necessary. A hundred years ago it might have been
unthinkable that a U.S. laborer would have to rely on his native English skills to appeal to an
American company.
However, this is increasingly the case, as workers must seek to differentiate themselves from
the workforce abroad. In addition, many workers must face contract options that place them
in a more unstable position in terms of employment guarantees from companies, leading them
to rely less on one employer and more actively seek other contract positions as well. This lack
of worker commitment is a major factor in Human Resource Management today.
Globalization is an irreversible trend, and with it come many unpredictable outcomes for the
business environment. Through it all, the job of Human Resource Management is to match up
worker skills with those needed by employers. For instance, while technology opens up more
cheap labor to U.S. companies, it also increases the demand for workers with technical
training, a skill more likely to be found in a first world country like the U.S. Indeed,
technology, information and English skills can be the battle cry of laborers redeployed into the
domestic U.S. market, and it is the job of HRM to find a balance between cultivating a solid
workforce overseas, while meeting the needs of the company at home.
Acquiring and Retaining the Best Employees
capital resources. Not only will the company pick up the right people to work for it, but it will
also engender a sense of loyalty among its employees, both reducing the rate of turnover and
upping the level of quality in the goods and services provided

Managing Human Talent
Acquiring and Retaining the Best Employees
capital resources. Not only will the company pick up the right people to work for it, but it will
also engender a sense of loyalty among its employees, both reducing the rate of turnover and
upping the level of quality in the goods and services provided.
To do this, there is a set of fundamental skills a company must have, and strategies it must
utilize, in order to build up within its ranks the best and the brightest talent available for its
specified field. Once understood, these skills and strategies are insuperable, and, somewhat
surprisingly, amazingly simple.
One of the most important aspects of gaining the right employee base is offering workers an
opportunity to excel and come alive in the workforce. The sense of a company’s level of
enthusiasm is palpable to any prospective employee who walks into an office building, and by
providing an energetic and optimistic workforce a company is already miles ahead in
promoting the recruitment of even more quality workers.
To develop a high level of workplace skill and confidence that improves both a company’s
internal and external image, one of the most important factors is handing over a sense of
ownership to the employees. Now this does not mean handing out stock in the company, profit
sharing, or any such measure. It is instead a talent management strategy, or Strategic
Human Capital Management, which involves changing an employee’s attitude by giving him
or her a sense of responsibility for what is being produced
Indeed, it has been proven that employees who feel a connection to their work consistently
achieve superior results. Effective leadership provides regular feedback on employee's
performance, encouraging them in the areas needing improvement and rewarding them for
positive results. In this crucial stage of talent management, it is important that program
leaders develop a high level of camaraderie with their trainees, coaching them, encouraging
them to quickly and effectively develop a higher achieving workforce.
Another important strategy that a strong talent management team will adopt is the design
and development of programs that resonate with the current state of a company’s
technological needs. For example, a company specializing in the production of software
programs might pool from universities, trade schools or elsewhere to find talent management
leaders who not only have excellent software skills, but who have a proven ability to convey
and foster those skills in new employees.
In addition, one of the foremost qualifications for such leaders should be a working knowledge
of the most current software applications and trends on the market. The construction of
programs that are at the state of the art is fundamental to successful talent management. Not
only will employees rapidly progress and achieve positive results in the company’s given field,
but they will be encouraged by the skills they are developing and consequently aim to achieve
better results in order to excel to the next stages of learning.
Indeed, learning is a key component in effective talent management. An employee is primarily
interested in his or her own career goals, and that is why the company that caters best to this

sense of career development will have the most success in retaining a skilled and qualified
workforce. The advantage to a company here is its ability to maintain a workforce that is
dedicated to improvement as well as committed to staying around for a while. Furthermore,
there is a sense of gratitude and loyalty that comes with being given a useful and lucrative
education, such as a good talent management team will provide. With a company working
hard to keep its employee base employable, those working for the company tend to
demonstrate much better results.
The relationship between companies and employees has changed dramatically over the past
few decades. With a shift from guaranteed employment in return for submission to the
company. The dynamic today is more like a partnership between the worker and the employer.
This provides companies with more flexibility in terms of hiring practices, but also encourages
a decreased worker commitment.
Career Resilience
While the company is no longer accountable for providing a secure job to the employee, the
employee in turn has to take charge of his or her career. This is known as career resilience,
and it is a dawning dilemma for many in the workforce. But if a company can effectively be a
guiding light for those who see an uncertain future for the next thirty or forty years, then that
company is already a giant step ahead in the game of retaining quality talent.
In order to build and maintain an effective career resilience program, a company must have a
clear vision of what the most desirable career path its top performers might like to take.
Superior talent management will then capitalize on these desires by developing employee
promotion and reward programs that bring the hold the worker’s hand, bringing him or her to
where he or she wants to be in life. For some, the path of success leads them to being able to
travel or interact with certain demographics. Most employees, however, are satisfied with pay
increases, benefits and, most of all, the sense of worth that their ambitiousness seeks.
Overall, it is important that talent management programs succeed. It means nothing that a
talent management program is designed well if it is not followed up by a dedicated team and
committed leadership that is on the site daily, ensuring that the employee's improvement and
satisfaction is accounted for and constantly increasing.
Defining Human Capital Management
What is Human Capital Management?
In recent years there has been a dramatic shift in the way labor is pooled across the globe.
The influences of technology and growth have effectively caused industry leaders to have to
change their focus from the brute force of labor to the actual quality of the workers available
throughout the world. This has produced a shift in tactics for those who manage Human
Resources. Instead of gathering up workers in a huge net and sending them off to the fields
and the factories, it is now necessary to nurture the working population by educating them
and developing their technological skills so that they will be able to contribute to the needs of
the enterprises they work for
Defining Human Capital Management

In recent years there has been a dramatic shift in the way labor is pooled across the globe.
The influences of technology and growth have effectively caused industry leaders to have to
change their focus from the brute force of labor to the actual quality of the workers available
throughout the world. This has produced a shift in tactics for those who manage Human
Resources. Instead of gathering up workers in a huge net and sending them off to the fields
and the factories, it is now necessary to nurture the working population by educating them
and developing their technological skills so that they will be able to contribute to the needs of
the enterprises they work for.
Focus on the right kind of employee
It is important today that companies understand the value of increasing a laborer’s output
capability by investing in, and adding worth to, his or her abilities, rather than finding a mass
of laborers who are willing to work yet who are unqualified to excel in today’s highly
technological business environment. Simply put, the idea is that, contrary to the old HR theory
that emphasized people as the most fundamental asset to a company, Human Capital
Management, or HCM is focused on the right kind of people to get the job done.
Indeed, the theory behind Human Capital Management is first and foremost the
transformation of a worker into a resource that is competitive. Now, this of course is more
easily said than done. The entire Human Resources industry is scrambling to keep up with this
trend, and the most successful are those who proactively seek to mold new labor into an asset
that is potentially profitable to a company.
Those who achieve high levels of success in managing human capital are those who can
harness the power of excellent leadership. The HCM industry is still up and coming, and if an
HR firm or manager can effectively meet the needs of companies by providing them with labor
that is not only available, but qualified, then the theory of Human Capital Management will be
more or less realized. But how does an HR firm or manager actually go about successfully
leading workers to a place where they are able to confidently proffer their services to
companies eager to employ? Likewise, what does it take to guide a company to a position in
which it can be ready to hire the right talent at the right time?
The role of good leadership skills
The failure of good leadership in the management of human capital is one of the primary
causes of bad employment processes, sagging profit margins and, potentially, the overall
failure of a company. In today’s competitive and turbulent labor market, it is vitally important
for HCM to focus extensively on the strengthening and development of excellent leadership
skills. All too often programs designed to develop and improve employee capabilities are
destined to fail for one simple reason – they lack the backing of a strong leadership team.
That is why it is crucial to set up a proactive leadership team, developing a roster of
professionals with advanced leadership skills.
If a company’s management is unsure how to begin, it will be wise to pay close attention to
the skills that really do pay off. One of the most valued leadership skills in the HR industry is
trust building. If Human Capital Management cannot deliver on promises it has made, both its
corporate base as well as its labor pool will quickly slip away. One company, for instance,
recruited a large number of a programmers from a developing country. Dreaming to work for a
U.S. company they gladly committed to the training courses provided, assuming there would
be work for them after they were finished. Unfortunately, by the end of the training courses
the company could only support half of positions sought by these potential workers, brutally

dismaying those left behind. While the number eventually employed was still enormous by
industry standards, the company lost out by the amount of negative press received.
If the Human Capital Management team had more foresight and a more realistic vision of job
availability, it would have selected its employees prior to the training procedure, saving
money, time and, most importantly, the reputation of the company.
Other companies fail by inadequately training their employees, leaving them once they are
sent to work and generating a higher than expected employee turnover rate while reducing
fiscal profitability. This is caused by employees being left with a sense of distrustfulness
towards their employer, something that is extremely important to prevent.
Employee development strategy
While good leadership is often witnessed indirectly on a larger and sometimes global scale by
investors who keep an eye on a company’s progress, there is, not surprisingly, a high level of
importance placed on the way a company approaches its employee development strategies on
a personal level. Luckily, one of the more advantageous aspects of having a dynamic and
changing labor pool is the availability of a high number of younger, tech-savvy recruits who
are, more likely than not, more susceptible to be influenced by charismatic leaders who appeal
to their ambition.
Indeed, psychologists have found that college grads between the ages of 21 and 28 in most
major tech industries respond incredibly well to Human Capital Management programs headed
up by engaging and personable leaders. It has been found that leadership success comes most
often from those who have a certain level of the “big brother” or “big sister” approach to the
younger recruits, guiding them in a nurturing manner that inspires a sense of loyalty and
trust.
It should also be mentioned that a similarly charismatic approach should be taken with
members of the other age groups, although adjusted somewhat so as not to demean them.
Yet while other age groups do also respond well to good leadership, the salient quality of the
younger demographic is its ability to adapt to the constantly evolving technology of their
respective fields. When hiring for senior positions in HCM teams, it is important to focus
primarily on the level of leadership skills demonstrated.
Defining Human Resources Management

The Business of Human Resources
The importance of a good Human Resources branding in a company is best illustrated by that
fact that, when it comes to employment, services and just about anything else that it does, a
company is in the business of people. So what better way to improve the quality of this
“people business” than to take a lead from the marketing domain, and make sure that a
company’s HR success is guaranteed by utilizing effective and productive marketing techniques
that are applied directly to people.
For a company, its Human Resources reputation is priceless. Indeed, it can make or break the
enterprise itself. Countless organizations have gone under for one simple reason: they were
unsavory to the public eye, and lost the opportunity to obtain quality human capital. The
simple truth is that while a company might be financially successful, employees don’t look at
that as a key factor in whether or not to work there. Instead, they look to how employees are
treated, and how developed is the company’s level of nurturing and caring for its workforce.
But what exactly must a company do to promote the development of a solid reputation based
on good employee rating? And how can a company know if it is on the right track? The
following discussion will shed some light on how to recruit and maintain the best talent
available, through having a top-notch and marketable HR strategy.
Imagine, for a moment, that there is a bakery in a city center. It has been a long established
fact that their bread is the best in town, and although the owners do not take special care for
its image and upkeep, the customers keep coming back because they know it has the best
product. Then one day a bakery chain sets up shop right next door. Now, this new bakery does
not just make good bread, it is on a mission to prove that it has the best hiring practices. It
launches an advertising campaign to all the people in town, hires attractive young workers and
decorates its window front with senseless but presentable boutique items that are, of course,
for sale. In fact, its bread is not as good as the original bakery, but in no time at all the expert
bakers at the original bakery see the benefits of employment over there, and they make the
move. Based on the power of marketing, it was able to champion an inferior product over a
traditional institution.
The role of good leadership skills
The failure of good leadership in the management of human capital is one of the primary
causes of bad employment processes, sagging profit margins and, potentially, the overall
failure of a company. In today’s competitive and turbulent labor market, it is vitally important
for HCM to focus extensively on the strengthening and development of excellent leadership
skills. All too often programs designed to develop and improve employee capabilities are
destined to fail for one simple reason – they lack the backing of a strong leadership team.
That is why it is crucial to set up a proactive leadership team, developing a roster of
professionals with advanced leadership skills.
If a company’s management is unsure how to begin, it will be wise to pay close attention to
the skills that really do pay off. One of the most valued leadership skills in the HR industry is
trust building. If Human Capital Management cannot deliver on promises it has made, both its
corporate base as well as its labor pool will quickly slip away. One company, for instance,
recruited a large number of a programmers from a developing country. Dreaming to work for a
U.S. company they gladly committed to the training courses provided, assuming there would
be work for them after they were finished. Unfortunately, by the end of the training courses
the company could only support half of positions sought by these potential workers, brutally

dismaying those left behind. While the number eventually employed was still enormous by
industry standards, the company lost out by the amount of negative press received.
If the Human Capital Management team had more foresight and a more realistic vision of job
availability, it would have selected its employees prior to the training procedure, saving
money, time and, most importantly, the reputation of the company.
Other companies fail by inadequately training their employees, leaving them once they are
sent to work and generating a higher than expected employee turnover rate while reducing
fiscal profitability. This is caused by employees being left with a sense of distrustfulness
towards their employer, something that is extremely important to prevent.
Employee development strategy
While good leadership is often witnessed indirectly on a larger and sometimes global scale by
investors who keep an eye on a company’s progress, there is, not surprisingly, a high level of
importance placed on the way a company approaches its employee development strategies on
a personal level. Luckily, one of the more advantageous aspects of having a dynamic and
changing labor pool is the availability of a high number of younger, tech-savvy recruits who
are, more likely than not, more susceptible to be influenced by charismatic leaders who appeal
to their ambition.
Indeed, psychologists have found that college grads between the ages of 21 and 28 in most
major tech industries respond incredibly well to Human Capital Management programs headed
up by engaging and personable leaders. It has been found that leadership success comes most
often from those who have a certain level of the “big brother” or “big sister” approach to the
younger recruits, guiding them in a nurturing manner that inspires a sense of loyalty and
trust.
It should also be mentioned that a similarly charismatic approach should be taken with
members of the other age groups, although adjusted somewhat so as not to demean them.
Yet while other age groups do also respond well to good leadership, the salient quality of the
younger demographic is its ability to adapt to the constantly evolving technology of their
respective fields. When hiring for senior positions in HCM teams, it is important to focus
primarily on the level of leadership skills demonstrated.

Human resource management

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