The concept of strength in numbers makes sense – right? A large military is more powerful than small armies and the person with the most money often calls the shots. On the other hand, a business with 1,000 employees or more gives the impression of being large and in charge but can, at its core, be weak.
In a recent survey conducted by i4cp, a common weakness experienced by large businesses is exposed. The study, which identifies The Top 10 Critical Human Capital Issues, begins with a dire message: “Employers simply do not have the internal bench strength of talent to enable sustained high market performance.” Of nearly 1,400 participants (all representing businesses with over 1,000 employees), 83 per cent reported that their abilities to “…effectively manage talent shortages in critical areas needs a great deal of improvement.”
Being considered a big business today does not guarantee success tomorrow. In fact, the results of this survey show that many companies could be on their way out if they do not invest in building strong workforces.
Here are three tips organizations can use to build up their human capital:
1. Focus on Leadership
Leaders need to excel in many areas. Two major areas of leadership include coaching and technology. Hopefully, millennial employees (who will begin moving into these positions any day now if they haven’t already) will have a good grasp on the spectrum of skill that lies between relationship management and technical ability. Unfortunately, only 34 per cent of companies feel they are doing a good job raising up leaders at this time. Others worry about integrating millennials into these roles in the future.
2. Identify Mission-Critical Successors
Many of the leadership qualities exemplified by present day executives are unique. Finding successors who understand the business world of tomorrow and have the skills to take a company to higher levels is a pressing challenge. 27 per cent of companies report having executive successors. Lesser so, only 18 per cent have people in mind for roles that are mission-critical. Organizations thrive on the heartbeats of their missions. Without identifying the person or people who are passionate about the mission and have the skills to carry out the vision, a break in leadership could be the demise of a big business.
3. Encourage Long-term Employment
Offering rewards to employees for fulfilling business goals and displaying exemplary character is a great approach to safeguard a company from this reality. However, only 34 per cent of i4cp survey participants claim to be successful in rewarding employee results and a small 25 per cent say they do this with employee behaviour, too. Finding ways to reward workers may be a company’s ticket to maintaining a healthy pool of talent to use and promote in the future. In fact, with proper reward measures in place, a company can retain its base of employees, raise up mission-critical executives and adequately train future leadership.
A system that encourages employee growth at all levels results in an active and engaged workforce. Invest in these employees and see the strength of a company grow. It is one way to increase human capital so that businesses can thrive in the future.
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