Human capital in modern economic systems is critical to national competitiveness. Nowadays investing in human capital allows different companies and organizations to be involved in the increasing war for talent, where the main prize is the economic priority. In such a way, defining the term ‘human capital’ it is necessary to mention that human capital is an assessment embodied in the individual potential to generate income. Human capital includes innate abilities and talents, as well as education and acquired skills. Thus, measuring the effectiveness of human activity is not only possible but also necessary to retain a viable market position.
The above stated definition allows us to include the term ‘Human Capital Strategies’ (HCS) in the next discussion. HCS is a an active consulting business that expects to implement not only strategic human capital planning, but also research and variety of strategy development services to all organizations and institutions interested in them. HCS’ main purpose is to assist organizations and other institutions to maximize their return on investments in personnel.
In contemporary society a traditional workforce plan is its past and a strategic human planning is its future. Comparing HCS with the more traditional workforce plan it becomes obvious that the last looks like a kind of risk management and it calls to identify the potential pitfalls and to prevent their destructive consequences. Thus, observing the benefits of HCS we see that they gain competitive advantage in connection with the work of the staff more effectively chosen, trained and appointed in accordance with clear criteria.
In conclusion, HCS can be effective only due to the development of a successful strategic human capital plan that includes the following key elements: building of an effective project team, review of relevant inputs and managers’ engagement, challenges’ assessment and solutions’ formulation, and, for the last, drafting the plan.