Human capital management (HCM) ushered in a data-driven approach to hiring, performance management and payroll. HCM additionally acknowledges that staff members are a firm’s greatest asset — maximizing their skills and competencies to benefit the organization.
Within HCM is the social sciences topic of human capital — applying a value to a person’s education, talents and abilities, and their influence on society at large or, in this case, a firm. HCM emphasizes the importance of investing in staff members and makes a connection that there is a strong return on investment when they are at the forefront.
HCM practices and processes can meet the needs of a demanding labor market. Managers can more easily identify skills and competency gaps, guiding them to fill those gaps during the recruitment process intentionally.
With data now used to cultivate effective teams, intentional leaders who act on a well-articulated vision of the firm are a necessity.
Intentional leaders drive HCM
Being an intentional leader is a balancing act. In addition to understanding the needs and mission of the firm, intentional leaders are people-focused — continually providing empathy, direction and purpose to their staff members, which are key to the eight firm leadership skills for 2023. These leaders are deliberate and self-aware.
Intentional leaders adept at HCM demonstrate a commitment to cultivating well-integrated teams that thrive.
They understand the importance of human capital and why staff members are essential, and they clearly communicate to each what is expected of them. This constant communication enables staff members to better understand how they help the firm meet strategic goals.
With staff members who are well-suited and trained for their roles, HCM ensures they reach their full potential. Staff members who feel supported and challenged at work are more likely to stay with the firm longer.
It takes time and diligence to cultivate and sustain strong teams within HCM, especially with the increase of remote working in the past two to three years. Intentional leadership addresses flexible and hybrid work environments by staying committed to staff members.
Professional development is a tenet of HCM
Professional development and raising skill levels are important within HCM. In the context of staff retention, for example, accounting and finance professionals want to work for firms that offer professional development opportunities because they want an employer who backs their career progression. This boosts not only retention but also recruitment.
Intentional leaders want their staff to succeed and encourage professional development opportunities. They see how developing the staff professionally can better help the firm reach its goals. Within a complex and changing business environment, it’s important for staff members to stay nimble and abreast of advancing trends ― such as data analytics, tax strategy or management analysis.
Additionally, it’s important to foster leadership skills within the firm and prepare future leaders. Successful human capital management relies on soft skills, including communication, time management, empathy, critical thinking and problem-solving. Employing leadership development training that focuses on a range of competencies ― from technology to soft skills ― can close skills gaps and cultivate the intentional leaders needed to thrive in today’s complex business environments.
Intentional leaders are dedicated to lifelong learning and continuous improvement.
With AICPA & CIMA Learning & Development subscription plans, teams of different sizes can train through on-demand learning resources that cover a wide range of competencies — digital, people, technical, business and leadership skills.
Your staff members are your firm’s greatest asset. Invest in their future and ensure the leadership legacy of your firm.