The role of people in promoting a company’s strategyCategory: Jobs & Careers
Article posted by: oscar tshifure
Today, the focus of competitive strategy is on building unique organisational capabilities. To achieve this, the attraction, development and retention of people must be embraced as an integral part of the company’s strategy.
The argument can be made that the organisation’s product is its reason for existing " but without the appropriate human resource capacity, the product will not be delivered. Talent is the product of ability (competence, education, training and experience), motivation (engagement, satisfaction, challenge and wellness) and opportunity. Human Resources policies and practices are now called on to contribute directly to the company’s bottom line. The strategy has changed to maximising skills sets and retaining effective people, as opposed to merely hiring and firing.
This has led to a shift in focus, with Human Resources taking on a more prominent and central role in business strategy and development. There is a greater demand than ever before for effective managing and developing of human capital. The need for this shift has been driven by the global economic and financial crisis, which changed the way employees and organizations interact. Employees no longer seek just a job, they want career advancement. This advancement does not necessarily mean being promoted; it can be as simple as knowledge and skills development.
Successful companies recognise the value of their employees. In order to value people, companies must move beyond the concept of human resources and toward the notion of human capital. The term “resources” implies an available supply that can be drawn upon when needed. The term “capital”, however, refers to something that gains or loses value depending on how much is invested in it, and how that investment is made.
It is also important for companies to recognise that talented and skilled employees, representing the diverse society in which we operate, will drive business success over the long term. This makes training and development of black employees critical.
Xabiso Chartered Accountants, a level 1 BEE contributor, is in the business of selling knowledge. Being up to date with the latest developments in the accountancy industry is a business imperative. As a result, Xabiso makes a considerable investment in the training and development of its staff and has a fully-fledged technical department.
The company encourages its people to study further and has 15 trainees on its staff studying to become chartered accountants. It also provides interest-free loans to staff members who cannot afford to pay for their studies. These loans are converted to bursaries when the staff member qualifies.
Human Resources’ responsiveness to employee needs and concerns has also seen employee retention of almost 100%. Xabiso prioritises people issues and concerns while balancing organization and customer priorities. It encourages Employee individualisation, i.e. knowing at least three non-work facts about everyone. The company also recognises and rewards service delivery, professionalism, and teamwork by awarding a recognition award monthly and overall winner annually.
So, since companies are finally valuing people and their skills, does this make it easier to hire and retain good employees? The answer is no. In today’s business climate, attracting and retaining the best employees is very difficult, because of a change in business practices and a shift in employee attitudes. Exposure to widespread layoffs has led to an erosion of company loyalty, and to a re-evaluation of career and life priorities by many employees. They now consider the continued development of their own skills as their personal passports to survival in changing times. So now we have companies looking to acquire the best talent, and a growing workforce of talented individuals who are no longer attracted by compensation alone, but who require and value intangibles as well.
A good business knows that while most other assets are replaceable and become obsolete, developing and nurturing people is paramount.
Posted By: oscar tshifure
Web: http://www.vumacom.co.za
Contact: e-mail
| About the Author: |
| Mpume Motsa, is the Human Resources Manager at Xabiso Chartered Accountants, South Africa |
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