How human capital management can help your business grow

There’s no point in having a great product or service when your staff keep walking out the door.

Managing people is one of the toughest business tasks but the development of human capital management (HCM) is making it easier with processes to help managers attract and retain the right people.

HCM uses technology to help business owners plan for expansion and align workforce to growth.

Casey Schmeichel, Human Resources Manager of accounting, auditing and advisory group YCG, has used HCM to manage the firm’s surge in size from 30 staff three years ago to 70 today.

Parramatta-based YCG threw Schmeichel the challenge of recruiting during rapid expansion while ensuring it had the skills in place when it was a bigger firm.

She defines HCM as aligning resource planning with the business’ strategy and says it has been vital to YCG’s growth.

HCM is a much more forward-thinking and dynamic approach than traditional HR.

Schmeichel became an active player in driving YCG’s business strategy, working with unit leaders on how to drive innovation and change. Where did the partners expect the company to be in one year’s time? What skills would it need then, and how could it attract talent to fill the roles?

YCG partnered with Oracle to develop software for an HCM program that gave Schmeichel consistency, automation and more effective data capture. This saved her from having to hire another staff member and improved processes for HR, management, and employees.

The data capture enables much better data analysis.

“You start seeing trends in how people apply to you and their backgrounds and you can then tweak your job ads and connections as you go forward and when keeping an eye on the market,” she says.

It is also easier to retain applicant details and keep in touch with those for whom there may be a position in a year’s time.

As an organisation grows its structure changes, and HCM makes it easier for the firm to plan for scale and hire people who are excited by the prospect and want to be part of the ride.

It takes time to build data, so Schmeichel advises businesses to start the process early because, as the database develops, it becomes “worth its weight in gold”.

She stresses that the analysis needs to be coupled with networking within the company. She speaks to line managers and partners to learn what is important to them and how HR can help. Because HCM allows greater engagement with employees, ideas flow back up the chain.

Some smaller business owners will argue they don’t have the time or resources for HCM but Schmeichel says they can’t afford not to be doing it.

“You can have all the clients in the world but if your staff don’t want to stay, your business will crumble. If you are inviting your staff to invest in the goals and strategies of the business in a very strategic way you are setting yourself up for success.”

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