The Importance of Human Capital
Let’s start by defining what human capital. The capital itself can be defined as a type of asset that allows a business to generate sales or control its expenses, and thus make a profit and which, more generally, to accomplish the mission, vision or respect the company’s values in relation to the key success factors in its market. Human capital is the sum of knowledge and skills of a person, item that the company can use as capital, so to make a profit or achieve its mission. At this point, the discussion is somewhat theoretical.
In practice, one must understand that in our current capitalist economy, companies need to develop human capital for all other forms of capital, such as technological or manufacturing capital for example. Although hyper-specialized machine can replace a number of employees, human capital is still required to develop this machine. We understand that in the current environment or the skills of high and knowledge are becoming increasingly important, the quality of human capital, the ability to retain it and resilience it becomes a key issues for companies from all business sectors.
The Primordial Role of Human Capital Management
The main role of a human resources department in business is to attract, grow and retain the human capital within the company. More concretely, its role is to find, recruit and select individuals with the right skills for work and skills the company needs. The role of the HR department is the development of human capital of their respective companies.
The Human Resources Department however has other functions, such as managing internal issues with current employees, for example, which takes some time a lot of management time, which prevents the department to focus on its main task what the development of human capital. Therefore, we must, in a company or the HR department is not fulfilling its functions effectively or in the case of SMEs, to question the relevance of having a human resources department in-house.
Some companies specialize in the placement of employees in the company, called commonly the investment agencies. A placement agency in Montreal, as Extra Multi-Resources Group, is responsible for research staff, the publication of the vacancy to the interviews on different platforms, and allows companies to raise capital human (employees) that meet the current needs of their environment. This is an interesting service for a company that wants to save on labor costs linked to the human resources department or who wishes to abandon a major part of the management and recruitment of personnel to focus on pressing issues or the opportunities present in the market.