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5 Ways to Fail at Human Capital Management in Your Organization

July 18, 2013

If failure is your goal, here's your 5-step plan (although we really hope you'll learn from these mistakes):

1.  Select and promote leaders with paltry leadership skills.  A leader with the emotional intelligence to engage with his or her staff will have a better understanding of the needs of each employee. Equipped with this understanding, the exemplary leader will demonstrate a commitment to human capital and will invest time and energy into mentoring, coaching and training each group member.  Helping organizations identify and develop effective leaders is a large part of what we do.  But if your goal is to ignore the potential of human capital in your organization, invest as little time and energy into selecting and developing leaders as possible. 

failure 1632297852.  Stick your head in the sand.  Ignorance is not always bliss, especially when you find that your organization is struggling to compete for top talent, wrestling with retention, or facing a succession planning drought. What you don’t know can really hurt you- so collect all of the information that you can around your current workforce’s skill set, their training needs, growth potential, and their satisfaction with your organization. One sure-fire way to fall behind the competition is to lose sight of how your employee’s development can impact the success of your organization.

3.  Keep your data contained in silo-like vacuums of futility.  Just like most employees, data can only reach its full potential when it’s involved in collaboration with others that have different perspectives. If you’re well known for quickly filing away performance review data, employee satisfaction survey results, turnover statistics and similar information, then you may be missing out on some interesting analytics. Integrate and use organizational data to drive human capital management decisions as much as possible. Alternatively, you can let your data languish away, never letting it reach its full potential (just remember- to do so might mean that you’re treating your employees in much the same way).

4.  Ignore the “human” in human capital management.  It’s no surprise that most employees don’t want to feel like you think they’re a machine. Employee recognition programs are sometimes thought to be superficial, but a well thought out and structured recognition program can make a positive impact on retention, performance, and lead to an exponential increase in your employees love for their jobs and your organization. If you’re not meeting this human need for recognition, don’t be surprised when your requests for increased productivity are returned with a “does not compute.”

5. Assume everything’s OK.  This may come as a shock to you, but it’s probably the case that most of your employees have lives outside of work. Employee assistance programs are a great way for your organization to help everyone deal with what happens outside of the office. Improving your workforce’s health and well-being is not only altruistic; it will also lead to gains in employee engagement and overall organizational productivity. If you want to send a strong message to your employees, choose not to offer employee assistance programs - the message being:  who cares?  Not us!

If you want to take a look at your organization’s efforts in these areas and examine ways to improve them, we can help - we'd be happy to help!  On the other hand, if your goals are to mis-manage your company’s human capital, just follow the steps above - you’ll succeed (at failing) for sure!

Human Capital Management starts with hiring,

so make sure the people performing interviews are trained, here's why: 

Importance of Training Interviewers

Amber Thomas Amber Thomas is a Consultant at PSI. In her role, Amber provides custom solutions to a variety of industries. Her contributions include project oversight, day-to-day client support, and on-going consultation.