Get the Most from your Human-Capital Investment

How important are people to the operation of your business? Are you getting the most from the investment which is, arguably, the most important asset your company has? Are your people committed to your organization – are you committed to your people?

Treating employees well may be one of the most critical variables to keeping people motivated and productive. Some studies suggest that only 24 percent of those in the workplace are really engaged in their job; a shocking 76 percent are not engaged. How effective and productive are employees who are not fully engaged?

What are employees looking for? For certain they want to be treated fairly and with respect. This is a concept that will improve employee retention if sincerely adopted by the hiring organization.

Business organizations are now expanding their energies toward preserving their investment in people. Why is this occurring? Organizations are finally realizing the economic costs and time investment put into the recruitment and training of employees. Once this investment has been “sunk” into creating valuable employees, this asset must be preserved. The costly alternative is to invest again in the recruitment and training cycle for replacements.

Businesses are motivated to retain the services of any asset for the expected useful life of that asset. Organizations recognize the importance of human capital (people) and that this is an invested asset which should be maintained with as much care as any other key asset class.

There have been many human resource models created to support the identification, selection and retention of employees. One of the most straight forward and pragmatic approaches was developed by Kevin Kelloway, a professor and researcher at Saint Mary’s University in Halifax.

Kevin uses the acronym HTML as his guiding principal for keeping good people. HTML, as many will recognize, is the open standard that allows information to be displayed over the Internet. In a similar fashion, HTML, as used in human resources, is also an open system that can be applied to any organization in the public, private or non-profit sectors.

HTML stands for: Hire the best, Treat them well, Manage performance, and provide Leadership. Any leader who follows this mantra will ensure a qualified team of committed professionals are working to achieve common objectives.

Hiring the best employees should be an objective of any organization. If you don’t have the best candidates, then you cannot expect optimal performance. When Jim Collins, author of “Good to Great”, analyzed companies that developed from good organizations to exceptional performers, he ranked hiring the best people ahead of strategy or any other managerial action. Hiring the best people is recognized as a critical factor in success.

Treating people well is a universally understood statement. People respond well to a good environment and will perform to the extent of their capabilities when they feel appreciated.

Managing performance is an issue that most managers have some difficulty with. Measuring and rewarding performance is an awkward responsibility that few relish. Setting specific, challenging but attainable goals is an effective method to establish performance standards and gauge success attainment.

Finally Leadership, it is the leaders’ responsibility to provide a safe and stimulating environment. The leader must encourage the growth and productivity of the people they are responsible for. Without good leadership even the best resources cannot achieve maximum efficiency. Transformational leadership measures effectiveness in terms of motivating employees and challenging them to increase performance.

Dr. Kelloway offers a closing comment that accurately summarizes this approach, “Common sense is not always that common and the HTML acronym helps us to remember what truly matters in managing people. Hiring the best, treating them well, managing performance and leadership are the principles that work in organizations of all shapes and sizes, in all industries and at all levels.”