Human resources (HR) teams work to attract, recruit, train, develop, manage and retain employees who contribute to achieving business goals. Advanced programs like the online Master of Business Administration (MBA) with a Specialization in Human Resources from Youngstown State University (YSU) set graduates apart in the HR field by emphasizing these skills and the insights needed to manage human capital.
Human resource-focused site People Managing People defines human capital management (HCM) as “the collection of organizational practices related to the acquisition, management, and development of the human workforce — or human capital — within an organization.” Forbes points out that rather than calculating the cost of these resources to manage human resources, HCM is committed to maximizing the value of each employee by investing in their continued development. Emerging leaders interested in senior HR roles can learn the skills, best practices and tools needed to attract, retain and manage an organization’s most valuable assets — its people — while supporting organizational goals.
Elements of Human Capital Management
The most common elements of human capital management include workforce planning to fulfill future staffing needs and compensation planning to make sure employee salaries are competitive and keep up with inflation. Recruiting and hiring are key HCM activities, followed by onboarding and training processes.
Other activities include time and attendance tracking, payroll and performance management. HCM ensures that employees contribute to the organization by helping them set goals as well as providing feedback and conducting regular performance reviews. The following are essential components of human capital management:
Finding the Right People for the Job – Recruitment
Attracting and hiring talent is the first phase of HCM. Matching people with positions that utilize their skills and talents is essential. Effective orientation and onboarding introduce the new employee to the company culture and the requirements of their role. Training is crucial to ensure the new employee is equipped to deliver their best performance.
Talent Management – Professional Development
Providing opportunities for employees to develop new skills and enhance work performance is key to their success, effectiveness and happiness in their position. Investing in existing staff can help reduce training costs, improve job satisfaction and increase employee retention rates.
The Importance of Recognition at Work – Retention
There are multiple factors involved in employee retention. As HR leaders work to invest in employees and make sure they perform at peak levels and thrive in their jobs, employee recognition is critical. Gallup and Workhuman published research on the business case for recognition at work. They found that “by making recognition an important part of company culture, a 10,000-person organization with an already engaged workforce can save up to $16.1 million annually due to reduced employee turnover.”
Research revealed that the cost of replacing an individual employee can range from one-half to two times the employee’s annual salary. As 46% of professionals surveyed are considering quitting their current jobs, it has become critical for companies to work at engaging and retaining their strategic staff.
Performance Evaluation and Reviews – Personal Development
In a discussion of HCM, Indeed points out that improving the effectiveness of performance reviews can promote excellence. Utilizing self-reviews, peer reviews and manager reviews motivates employees and gives them actionable feedback. Appraisals can help identify gaps in training, resources and job satisfaction.
Benefits, Time, Attendance and Payroll – Administrative HCM
Managing the administrative responsibilities of HCM ensures that organizations track work hours, provide compensation, manage benefits and keep accurate records. These activities generate employee data that helps evaluate return on investment and make informed, data-driven decisions.
Becoming a Senior HR Professional Leader
Mastering HCM is highly beneficial to those seeking a career as an HR leader. Understanding cost-based decision-making, corporate financial management, managing organizational talent, operations, marketing strategy, and business policy and strategy are critical components for every HR leader. Learning how to develop and lead high-performance teams and strategically manage human capital are part of the curriculum in the fully online MBA with a Specialization in Human Resources program from YSU.
The U.S. Bureau of Labor Statistics predicts that the job growth in this field is faster than average for all occupations, expected to grow by 8% through 2033, with over 86,000 openings for human resources specialists each year. This program prepares students for a variety of high-level HR roles that meet this demand, such as recruiter, human resources manager, talent acquisition specialist, training and development specialist, and more.
Learn more about YSU’s online MBA with a Specialization in Human Resources program.
