Human capital is a vital resource in any business, because ultimately, people execute projects and help reach goals. “Human capital is the sum total of a person's knowledge and skills that the company can use to further its goals. Human resource management is involved in acquiring, cultivating, and retaining human capital.” ("What Is Human Capital? - Importance to An Organization Video - Lesson and Example | Education Portal," n.d.)
The role of organizing human capital remains consistent from organization to organization as its function is the same regardless of the type or size of the business. Organizing human capital is about attracting, developing, retaining and managing people. It should include careful and selective hiring practices; effective management of the abilities, skills, experience and career motivations of employees; employee training and development; a commitment to fostering a collaborative environment; the coordination of sharing of information; and a dedication to employee satisfaction, ensuring their commitment and retention.
Every “new hire” comes to our company with generalized human capital but, additionally, we only hire those who have specialized knowledge in our field. (They must have experience working in a veterinary hospital.) Once on board, we begin building up company-specific capital by developing and training them to make them more productive to us. Examples range from training them on how to use our practice management software, our unique policies and procedures, understanding our culture, to where to find the restrooms.
We spend time getting to know each employee, discerning their strengths and weaknesses and, as much as is feasible, tailor their job duties to fully utilize their strengths. We offer training to improve their weaknesses. We encourage their growth and development which increases their personal satisfaction and commitment to us. (It also increases their human capital.)
Further, we have designed a compensation package that…