Human Capital needs to be Planned - Building A Foundation For Success

Noted recruitment and talent management expert, Allan Schweyer, has stated that "Human capital is a core corporate asset, just like financial and physical assets.  As such, it must be managed the way companies manage other assets.  This requires thinking strategically about how to invest in human capital, and figuring out how to optimize and measure its return." 

When laying a foundation for an entrepreneurial venture, planning is crucial.  Planning for every aspect of the future must be a priority.  An important part of planning for the future is developing a plan for full and effective utilization of human capital.   By human capital, I mean the employees, contractors, advisors, vendors, etc. who will help implement the mission of your enterprise.  Ms. Denise Rolark-Barnes, an owner of a Washington, D.C. based newspaper, recently shared with me that one of her greatest challenges as a business owner is getting and keeping great people.   Ms. Rolark-Barnes states, however, that she is not alone in this challenge.  According to her, all business owners will face this challenge at one point or another.  She advises that devising a plan for addressing this issue is something that all entrepreneurs should do to ensure the continuity and longevity of their business. 

Ms. Rolark-Barnes suggests addressing the issue of acquiring and retaining great employees in the following phases: Recruitment (create an attractive idea which will interest people in joining you); Training (mine potential by cultivating growth); Retention (“give 'em an excuse to stay”); Career Path (provide hope for upward mobility); Mentoring (encouraging model behavior); and Promotion (“move 'em along' and compensate accordingly”).  Ms. Rolark-Barnes’ work and forethought in this area have resulted in recent instances of highly talented individuals coming to her organization.  She believes these talented individuals will ensure that her company is well-positioned and ready for future shifts in her industry.

Planning for the human capital needs of your company is something all entrepreneurs must do.  Without a plan for attracting and retaining the best talent, you may find yourself unable to effectively utilize one of the most important resources your business will ever have.