Human capital management (HCM) strategies acknowledge that employees, their skills, experience, knowledge, concepts, and innovative ideas are all valued within an organization. A company must understand its employees inside and out in order to expect the best from them. A human capital plan refers to the development of strategies to recruit the best available talent, develop career plans for employees, mentor and coach the employees, motivate employees to deliver their best at all times, and develop performance management strategies. The following are five essential components of these strategies.

1. Clarity in Human Capital Goals

It is critical to understand the gap between an organization’s current state and its desired state. This can help to develop human capital goals that would not only increase employees’ overall efficiency but also make them feel more attached on a closer level to the organization. Some examples of human capital goals include retaining dedicated and hardworking employees, continuously develop skills of the workforce, developing realistic induction programs for new hires, and only hiring the very best talent in the pool.

2. Clarity in Direction

This important component involves understanding an organization from the inside out. One must understand the senior management, customers, expectations and requirements of stakeholders, vision of an organization, budgetary constraints, and the needs of the current employees in order to achieve a concise, clear strategic direction. To do this, companies must collect data from employees, customers, and stakeholders to understand their expectations and needs. Discussing these issues will help define the entire vision of a company and its team. An effective analysis may involve analyzing current employees’ as well as where they see themselves and the company two years down the road. This type of analysis can help organizations pinpoint any flaws or gaps in the system.

3. An Accountability System

No plan or process is successful until and unless it is managed well. It is critical to keep track of progress. An accountability system involves measuring the failure and success of an implemented plan. It also helps organizations to analyze the loopholes in the plan, if applicable, as well as ways to rectify the same. Without an accountability system, organizations will have no knowledge of whether a strategic management plan is working or not.

4. A Foolproof Implementation Plan

An implementation plan includes the steps and actions required to implement human capital strategies. Successful implementation plans include allocating a responsible resource, allocating budgets, and setting a deadline or time frame for implementing the human capital plans. As is the case throughout each component of an HCM plan, clarity is key. Create an implementation plan that clearly demonstrates the strategy and goal.

5. Strategies and Policies to Accomplish Objectives and Goals

Once an organization has set objectives and goals, it can design policies and strategies to achieve them. Human resource professionals must design long-term plans to ensure their employees are happy with their jobs. Satisfied employees are more likely to deliver their best, thus increasing the likelihood of a success. Organizations may delegate responsibilities to employees based on their interest areas, expertise, educational qualifications, and skills. However, managers must regularly interact with their employees to understand their employees’ expectations as well as to monitor their growth within the company.

Human capital planning helps a company to design human capital policies, programs, and strategies to increase employee efficiency and help them to accomplish the already-defined objectives and goals of the organization. Implementation of the human capital management plan helps to ensure that human resources professionals are hiring the right candidates, training them in the most effective way possible, managing them as employees, upgrading their skills when necessary, and retaining them as employees.