What is Human Capital?


At QCEP, we believe Human Capital refers to hiring of the right talent and putting them in the right positions. Over 60% of human capital is being used inefficiently and this is due in a large part to lack of organizational leadership. How would it change your bottom line to improve your human capital? What would your organization look like if you had the right talent in the right positions? How would things look differently if you were able to truly capitalize on the skill sets of the people in your organization?

 

human-capital

 

In relationship building we say, “Spend more time with the people you want in your circle of influence. Spend less time with those you don’t.” It simply makes sense that you would invest more time and energy into the most valuable relationships, but when it comes to the workplace, we instead see managers investing time and energy into putting out fires and using their resources on those employees who are problematic.

Doesn’t this seem upside down? The more time a manager spends with an employee, the more they learn about the talents and skills that employee has. From there, they are better able to capitalize on those skills. This creates a win-win situation because the employee feels valuable and a part of the bigger picture, which is a huge motivating factor in today’s workforce. This is rewarded to the employer through higher morale and increased productivity.

The more time the manager spends improving, training and investing interest in the employee, the better productivity will be generated by that employee. This concept is misunderstood and overlooked by most businesses, but it is even harder to grasp by those in the automotive industry due to the high level of turnover. But what if turnover was reduced by implementing more of these concepts?

Crisis management is not leadership. Investing in existing employees means providing the right training, the right motivation, the right engagement. It means managers truly understand the employees and go right to their heart, and in doing this, they no longer have to twist the employee’s arm to get results. Leadership creates a culture that keeps the employees coming back, and having them be more effective and efficient. There is a lot of management’s time spent in this process, but it is a time investment that results in significantly better returns.

If you had a marketing method that returned fifty cents for every dollar that you put into it, would you keep doing it? No! That would be taking a loss. Would you be content with an investment that returns a dollar for every dollar you put in? How long would you play a slot machine that for every dollar you put in, you won a dollar? You could play it for infinity, but you would never get ahead. Sadly, many dealerships are doing this every day. They invest a dollar and get fifty cents to a dollar back. They do this by placing an ad for employment on Craigslist and hiring the first person who walks in with a pulse.

QCEP Consulting uses tools that allow organizations to hire the right people for the right job. This actually lowers payroll and bottom line expenses because it reduces turn over. It reduces endless rotating job postings. It reduces the time and expense of the onboarding process. And, because people who are optimized to do their jobs are doing what they are good at and comfortable in, they stick around. They aren’t facing conflict they can’t handle. They aren’t working in stressful situations that they don’t have the skills to navigate.

In order to create this culture, managers need to get the skills and training they need in order to pass on the skills and training to others. This is where QCEP Consulting comes in. We help you manage human capital for the purpose of improving your bottom line. Ready to talk? Call today.

Posted July 15, 2016 in: Automotive Retail.

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