Human capital is, in synthesis, the value determined by the collective attributes of the people in an organization. The people are those who generate value for the companies, through goods production, providing services and sharing their ideas. The pandemic has modified the reports between employers and employees, relationship that was evolving, increasing the awareness that people are the key factor for achieving a sustainable competitive advantage.
Lloyd’s and KPMG have published a report that explores how organizations can protect and improve their own human capital value, considering new challenges regarding the modes of working that have emerged in the past two years. The passage from traditional production to modern and conscious economy, puts human resources in first plan. It is necessary to concentrate the investments in them, in order to improve productivity and profitability. Those organizations aiming at developing the competences, engagement, company culture and wellbeing in the working environment, (whether in presence or remote) will be the ones capable of attracting and keeping the best talents.
In the post pandemics reaction, the report between companies and employees sets up four major topics: development of the trust and valorizing the capacities, focusing on the physical and psychological wellbeing, the importance of working environment and the consideration of the difficulties to substitute social interactions. These are the areas in which the improvement margins are decisively wide, considering that 34% of employees report a lack of trust from their superiors in their capacities and 60% of them report that their mental health has worsened during the pandemic. The percentage of people who have worked from home has increased from 18% to 37% today. 65% of professionals state that the aspect they miss the most is socialization.
The report suggests focalization in four action plans. The first priority is guaranteeing that company leaders sustain a culture that actually valorizes employees, whether remotely or in presence. The combination between strong leadership and positive culture is fundamental for involving and empowering everyone. The second suggestion is utilizing analytical instruments in order to find the most qualified people, to manage the diversity and compatibility between the clients, to monitor the loans and other aspects, like alignment with company culture and wellbeing in the work surroundings, as well as identifying potential risk factors. Thirdly, it is important to give priority to employees’ needs, taking care of them and their general wellbeing, besides motivating them with career-growth opportunities. At the same time, company dependency on a single individual will reduce, a situation that could have a negative impact on the organization’s competitivity.
Finally, companies must be ready to the continuous changes in the world of work and social dynamics, faster and more frequent with respect to the past, and must develop a higher capacity not only in adapting, but also in anticipating future trends.
