New Year - New Business Goals for 2025!

As we near the end of 2024, it is time to review what we can do better.

We suggest starting with one of the most significant costs your business faces — the humans working behind the desk and in the field. Human capital is the economic value your employees provide through their skills, experience, innovative ideas, and knowledge, and at the end of the day, your company’s survival is based on its effectiveness, productivity, and structure. The ‘people costs’ can be a significant downfall when you have the wrong employees in the wrong positions or fail to invest in their growth and advancement. However, it can be a significant opportunity when they are strategically recruited, trained, motivated, and developed. This is why, when it comes to human capital planning, HR professionals must be brought on board.

To help you understand why their addition to the execution process is highly beneficial, we’ve listed the top four reasons you should always involve HR in human capital planning.

1. They better understand the “human” aspect of human capital.

Today, your workforce comprises various age groups, races, nationalities, skills, talents, and educational backgrounds. Therefore, human capital strategic decisions must involve those with in-depth knowledge of the company’s key assets — the people. Human resource professionals are skilled in interacting with employees throughout their careers. They are also best suited for knowing where to locate prospects, what market to pursue, and who to employ for which new positions.

2. They have the insight to streamline recruiting processes.

Building human capital goes beyond posting descriptive job ads and hoping the interview process goes well. Data-driven HR professionals are equipped to develop and analyze material to ensure the hiring process is efficient and accurate. They can provide fact-based solutions to reduce careless mistakes in the development phases and offer solutions and proper training and programs to handle problems that may arise.

3. They understand the company’s culture and goals.

HR leaders pride themselves on being fully involved in building a workforce that aligns with the executives’ vision and mission. It’s their job to know the company's culture and take actionable steps to meet your business goals and objectives, so when it’s time to recruit, train, or motivate your team, they will already have an implementation and communication plan in place. This is a beneficial asset for business executives who are preparing their human capital process.

4. They recognize skill shortages.

Focused on building a multidimensional workforce for your company, HR professionals have a niche for identifying skill gaps. They are experts in finding solutions for filling all skilled positions. Your HR team will also know about the various talent programs and development strategies needed to fix any issues your management team needs. Remember, your company’s success rests upon its human capital. An effective human resources management professional collaborating with the planning process will tremendously improve your bottom line and help you reach short-term and long-term goals.

Was this article helpful? Chief of Minds provides innovative human resources and payroll services that position your business for growth and increase productivity and profitability. Our full-service human resources strategy firm focuses on helping small to medium businesses decrease workload, improve HR functions, and reduce costs. Contact us today and allow us to either work with your existing HR department or serve as your company’s HR department. We’re here for you to win!