Tackling the Human Capital Challenge

The American Society of Training and Development (ASTD) has released a very informative report on how companies are tackling the human capital challenge they face. The report also points to remaining problems and what needs to be done.

Responding to the human capital challenge means more than figuring out how to recruit and retain top talent. Organizations also need to address other obstacles to human capital development and management, including:

* Weak job architectures and job design.
* Tenured and older workers limiting the mobility of new talent.
* Workers feeling entitled rather than challenged and motivated to perform.
* Failure to align human performance practices, including compensation, work design, training, and performance management.
* Disconnect between human capital practices and organizational performance and goals.
* Failure to accurately measure the quality of training and learning outcomes.

What was the "Old Reality" surrounding human resource management?

* People need organizations.
* Machines, capital, and geography are the competitive advantage.
* Talented employees make some difference. Jobs are scarce.
* Employees are loyal and jobs are secure.
* People accept the standard package they are offered.

What is the "New Reality?"

* Organizations need people.
* Talented people are the competitive advantage.
* Talented employees are essential to success. Talented people are in demand.
* People are mobile and their commitment is short term.
* People demand much more.

What are the right questions that organizations should be asking?

* Is your organization developing and adopting a human capital strategy?
* Is your organization assessing workforce characteristics and future needs?
* Is your organization developing and/or implementing a strategy for recruiting and retaining the talent the organization needs?
* Is your organization implementing a well-defined strategy for both identifying and developing your senior, mid-career, and newly appointed managers and leaders?
* Is your organization identifying best practices and benchmarking studies?

Transferable practices are described from several employers, including Delta Airlines, Kroger, Home Depot and Southwest Airlines.

Go here to download the report.