Human Capital Investment For Better Business Performance
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Human Capital Investment For Better Business Performance - Bawono Suryaning
FOREWORD
Praise and gratitude we always pray to the presence of God Almighty because of the abundance of His grace and guidance so that we can finish compiling this book. Along with the demands of the community on the importance of information and education, especially regarding Human Capital Investment, is the main objective of this book.
The purpose of this book is our material to develop the next edition of the book and can be a reference for the public, practitioners and academics.
This book contains all aspects related to human capital and the organizational environment. Basically, the preparation of this book is also a discourse for us to always learn and have an optimistic view of looking ahead that there is always a way to achieve success, one of which is by utilizing the right human capital.
Not to forget, we also express our gratitude because without the help of various parties we might not have been able to finish this book. The hope is that this book on human capital will benefit the community and be able to become a reference for the community in developing their human capital capabilities.
No human being is perfect as well as His creation, There is no ivory that is not cracked, we welcome all comments, criticisms, suggestions and messages that can build us to be better in releasing the next edition of the book.
Malang, November 05, 2020
Author
Dr. Eny Lestari Widarni, SE, MM
CHAPTER 1. What is Human Capital? 1
1.1. Definition of Human Capital 1
1.2. Human Capital Management 3
1.3. Human Capital Components 7
Intellectual capital 8
Emotional capital 11
Social Capital 13
Internet and Social Capital 15
Deviation of Social Capital 16
CHAPTER 2. Human Capital Investment 18
2.1. Organizations and People 18
2.2. Calculating Human Capital Investment 19
1. Revenue per Employee 19
2. Human Capital Revenue Factor (HORF) 20
3. Human Economic Value Added (HEVA) 20
4. Human capital Cost of Factor (Human Capital CF) 21
5. Human capital value added (Human Capital VA) 23
6. Human capital Return on Investment (Human Capital ROI) 24
7. Human Capital Market Value (Human Capital Management Value) 24
CHAPTER 3. Why is Human Capital Investment Important? 26
3.1. Human Capital Investment is important. 25
3.2. Benefits of Investing in Human Capital 26
CHAPTER 4. How to Invest in Human Capital 51
4.1. Paradigm Change in Human Resource Management 30
1. Understand what human resource development is. 31
2. Help employees follow the necessary skills. 33
3. Make life easier for workers with static skills. 34
4. Invest in the best supplies, tools, and equipment. 34
5. Empower HR Professionals to develop new ways to invest in people. 35
4.2. Human Resources Investment Posts 36
1) Leadership 36
2) Culture and Engagement 37
3) Learning & Development 37
4) Simplification of work 38
5) Digitalization of human resources 39
6) Performance Management 39
CHAPTER 5. Human Capital Investment Keep Your Potential Talent 41
5.1. Employee Job Satisfaction 40
5.2. Tips for Steps to Increase Employee Job Satisfaction 41
Step 1: Organizational team survey 42
Step 2: Make the appropriate changes. 42
Step 3: Acknowledge individual differences. 43
Step 4: Communicate change, and be creative. 44
5.3. Tips for Retaining Talented Employees 45
1. Understand the level of job satisfaction of employees in the organization 46
2. Give an Award 47
3. Build Communication With Employees 48
4. Advise employees to do light exercise 49
5. Determine the Mission of the Organization 49
6. Understand Organizational Routines 51
CHAPTER 6. Human Capital Investment Talent Management 53
6.1 Talent Management 52
6.2. Employees are Human 53
6.3. Talent Management Challenges 55
1. Limited budget 56
2. Lack of dexterity 56
3. There is no HR analytics strategy. 57
6.4. Talent management strategy 57
1. Improve the recruitment process 58
2. Providing opportunities for continuous learning and development 59
3. Appreciate employee hard work in creative ways 60
4. Invest in analyzing the workforce in organizations 61
5. Off board employees attentively 62
6. Collaborative talent management 63
Chapter 7. Measurement of Human Capital 64
7.1. Measures of the Human Capital Assessment and Accountability Framework