Some studies say that more than half of US employees quit due to their manager. Others report that eight in 10 workers left their jobs due to underappreciation.
Either way, both reasons boil down to the same person: the manager or the “big boss”. While some may think that it’s easier to replace a “junior” employee, it’s not, and it’s quite expensive. One estimate is that the turnover costs of an entry-level worker equate to about 50% of their salary.
The bottom line is, losing people is bad for business. That’s why your company should be managing human capital in a more effective manner.
Ready to learn all about the top practices for improving human capital management? Then let’s dive right into it.
Help Hone Your Managers’ Management Skill
Not all managers contribute to the loss of talent, but all of them can benefit from more training. In fact, even refresher courses on management and leadership skills can already help. Sometimes, all they need is a gentle reminder of what it takes to be a great boss.
They can also learn new techniques, such as constructive conflict and improved consideration.
Constructive conflict is a process that lets team members voice out their opinions. This is often used in settings where managers need to make a decision that will affect the entire team. It’s also a skill and one that involves proper encouragement for team members to participate.
Consideration is another essential management skill that puts importance on team member participation. It’s the act of considering and acknowledging every members’ viewpoints.
Considerate managers ensure that their team members feel that their opinion matters. They make it a point to openly discuss how they considered each member’s perspective. They then explain how they factored in these views in the decision-making process.
These are just two skills that you can help your managers develop and hone. Both, however, help address the issue of “underappreciation” in the workplace.
Pair Your Talents With the Right Managers
When deciding which team member should belong to, employers should consider compatibility. This includes the alignment between the two party’s goals, objectives, and subject expertise. The two should share the same values, and both should be thinking of how to further each other’s careers.
Otherwise, a misalignment on any of these factors can trigger destructive conflicts.
One way to avoid this is through a compatibility test based on psychometric profiles. These profiles are an analysis of an individual’s behavioral styles and mental capacities. In a way, they help employers measure how suitable an employee is for a role or a specific team.
Either way, this comparison can help determine how compatible a team member and a manager is. By comparing their profiles, employers can see if their goals and expertise align.
Coaching Tailored to One’s Specific Goals, Roles, and Weaknesses
Coaching requires time, effort, and resources, but given to the right people, it’s worth it. However, all these can also go to waste if it’s not aligned with the goals and roles of the trainee. The same goes if the training doesn’t help improve one’s weaknesses.
That’s why employers should personalize the coaching programs they roll out. They should tailor it based on the needs of the trainee to maximize the results.
Custom training programs also better encourage participation from employees. Since they know that the programs will benefit them, they’ll feel more inclined to finish them.
For a more in-depth look at online coaching and learning programs, you can discover more.
Recognize Those Who Deserve Recognition
More than six in 10 employees say that they’ll feel happier if only they get more recognition at work. That’s compared to the 35% who said that a raise would make them feel happier.
That easily makes recognition a must for strategic human capital management. While a raise does sound great, employers can’t just give this out to all their people. Whereas praise and recognition are free, yet they still go a long way to making talents happy.
Keep Tabs On Accountability
On the other end of recognition is accountability for mistakes. Managers should praise those who deserve it, but they should also address failures. They need to hold those responsible accountable for their errors.
One-on-one coaching is almost always better in these situations. It helps prevent embarrassments, while also letting managers focus on each member. During the training, they can give specific feedback to help prevent future mistakes.
Build a Custom Benefits Package
Speaking of salary raises, one in every five US workers say they would choose that over benefits. The rest of the 80% say they’d rather stick to a job that has good benefits.
That said, it may be best to secure your human capital with better benefits rather than a pay raise. At the same time, it’s also important to consider what your people consider as “good benefits”. Asking them directly is a good approach since this will also make them feel valued.
For instance, some may want more health coverage, while others may want life coverage. Being able to work remotely for a few days in a month may also be an ideal benefit for some of your talents.
Managing Human Capital Effectively Is Key to Talent Retention
There you have it, the best strategies you can use when it comes to managing human capital. As you can see, there’s a lot that employers can do, with many of them being a lower-cost alternative to pay raises.
What’s important is to follow as many of these as possible, as they are all keys to talent retention. These management tactics can help you keep those one-in-a-million talents happy and satisfied.
Ready for even more nuggets of wisdom to help you boost your management skills? Then be sure to check out this site’s Employee Performance section for more guides like this.
