3 qualities of human capital appreciation that will be sustainable over the next 5 years

The value of your human capital is your "value"; to manage your human capital is to manage the competitiveness of the workplace. If the human resources an enterprise has cannot be transformed into human capital, the increase in the number of employees is only an increase in labor costs, not the competitiveness of the enterprise.

Author | Rao Zheng, Executive Vice President, Beijing Huaxia Cornerstone Management Consulting Group

Source | China Cornerstone Management Review

The value of your human capital is your "value"; to manage your human capital is to manage your workplace competitiveness.

If the human resources an enterprise possesses cannot be transformed into human capital, even if the number of employees increases, it is only the growth of labor that collaborates the competitiveness of the enterprise.

In modern society, even if a city has a large population, if it lacks human capital for industrial operation, it will be difficult to build regional economic ecological advantages and industrial competitiveness.

1

-THE FIRST-

The "value" comes from

Management of individual human capital value

Human capital is the socially recognized value of human labor capacity and is the basic form that can be measured and traded in the labor market. Individual human capital is the ability to create real and future social value through knowledge, skills, and experience acquired in the course of long-term study and work.

Before being traded in the labor market, this labor ability is generally reflected in the professional ability, vocational ability, innovation ability, professional credit, etc. accumulated by individuals over a long period. This labor ability can only truly become individual human capital or the realisation of the value of individual human capital after it is recognized and employed by society.

The realization of the value of individual human capital can be understood as "status" or "value" from the perspective of the individual being recognized by the society; from the perspective of the value of individual human capital being recognized by the enterprise, it can be reflected as "rank" or "salary" in the enterprise organisation. "or "salary level" in the enterprise organization.

1. Career planning is the main form of individual human capital value management

Human capital, from the moment each individual starts a business or seeks employment according to the legal age, becomes the focus of attention for himself, his employer, and his partners. Each individual is constantly weighing up his or her human capital, as well as the human capital value of the partner or employee and how it is changing.

Each person plans his or her human capital management according to his or her human capital status, such as continuing education, seeking a job promotion, jumping from one job to another, starting one's own business, etc. This personal human capital management can be seen as personal career planning.

2. The creation of a personal career brand is an important way to enhance one's career value

Workplace value is different from the ordinary sense of "value". In everyday communication, people often refer to "value" as the wealth they already possess, regardless of the source of wealth, including inheritance, gifts of property, etc.; or the level of future wealth, also including inheritance, gifts of property, etc.; or their professional, professional and creative abilities are estimated to be converted into wealth The ability level of ownership. This is the third case.

Workplace value is made up of three components: professional competence, professional credit, and professional brand.

Professional competence is the basis of workplace value, without which there can be no professional credit or professional branding.

Professional credibility is the guarantee of workplace value; without it, employers will be at great risk of hiring and their workplace value will be greatly reduced.

A professional brand is the sum of professional competence and professional credit. Building a professional brand not only enhances one's workplace competitiveness but is also an important way to increase one's workplace value.

2

-THE SECOND-

The three characteristics that shape

Preserving and enhancing the value of human capital

For enterprises, human capital is not a single individual human capital or a collection of human resources, but a group of employees who have been baptized by the enterprise's culture, share the enterprise's core values, form a community of interests, a community of career and a community of destiny, and can perform and create value for the enterprise in the long term.

The human capital of an enterprise is the source of its core competitiveness and the mainstay of its development and is the active element of its human resources activated by its corporate culture.

Therefore, corporate human capital cannot be equated with corporate human resources. Only those human resources that truly integrate their professional and vocational abilities into the corporate organization effectively, enter the corporate strategic state in their work and continuously create corporate value can become corporate human capital.

Corporate human capital not only has distinctive corporate cultural attributes but is also strategic and time-sensitive. The cultural, strategic, and time-sensitive nature of corporate human capital together constitutes the basic characteristics of the value of corporate human capital.

1. Cultural characteristics of the value of corporate human capital

The cultural nature of corporate human capital means that employees in an enterprise organization who understand and agree with the core values and codes of conduct of the enterprise, who consciously and voluntarily strive for the vision, mission, and strategic objectives of the enterprise, and who accept the reasonable arrangements of the enterprise organization, are the human capital of the enterprise.

Therefore, corporate human capital is the effective allocation of human resources based on corporate strategy and organizational identity and is a human resources team with the same objectives and the right match of people and jobs that is effectively organized. Therefore, corporate human capital has strong corporate cultural attributes, and the only human resources that can be effectively organized by the company and its strategy are corporate human capital which has the value of corporate human capital.

2. Strategic characteristics of the value of corporate human capital

The strategic nature of enterprise human capital means that only when the human resources of an enterprise can serve the enterprise's strategy and create value for the achievement of the enterprise's strategic goals can they be transformed into enterprise human capital and can be called enterprise human capital.

The human resources of an enterprise, as one of the "resources" necessary for production, is a dynamic "resource" element that must play an active, active and creative role in creating value, bringing value-added, and contributing to the creation of profits for the enterprise. Otherwise, it is a failure of human resource allocation. Otherwise, it is a failure of human resources allocation and a waste of human resources.

Therefore, the human capital of an enterprise is the human resource team that is effectively activated by the enterprise strategy and organization and can create the value-added of the enterprise. Employees who are separated from the company and are outside the strategic and organizational state of the company are not human capital and cannot be included in the evaluation of the value of human capital of the company.

3. The time-sensitive nature of the value of human capital

The timeliness of corporate human capital refers to the fact that the value of corporate human capital will change with the change in corporate strategic objectives. About corporate strategy, the maturity of human resources is one of the key indicators in the evaluation of the value of human capital of an enterprise.

Human resource maturity refers to the degree of specialization (knowledge, skills and experience, and achievements), professionalism (synergy, cooperation, team spirit, big picture), and corporatization (sense of belonging, loyalty, and dedication) of the enterprise's human resource team as a whole, which is the ability and degree to which all employees of the enterprise agree with the enterprise's business philosophy, meet the enterprise's business strategy and organizational requirements and establish the enterprise's competitive advantage in the market, which can also be called The degree of the strategic nation of human resources.

Enterprise strategy is cyclical, and the value of human capital will change with the requirements of enterprise strategy for human resources and will change with the changes in the maturity of human resources. The development strategies of enterprises in different cycles will have different components for the core competencies of enterprises and will put forward higher requirements for the creation of core competencies of enterprises.

Just because human resources meet the requirements of specialization and professionalism of an enterprise in the previous strategic cycle does not mean that they can meet the requirements of specialization and professionalism needed to achieve the goals in the next strategic cycle. Therefore, the value of an enterprise's human capital is time-sensitive and must be adjusted by the changes in the enterprise's strategy, so that the quantity, structure, and quality requirements of the enterprise's human resources can be adjusted promptly to promote the improvement of the professionalism and professionalism of employees and to preserve and increase the value of the enterprise's human capital.

3

-THE THIRD-

Regional human capital value level

A sign of a city's industrial competitiveness

Regional human capital refers to the sum of talents that form the core competitiveness of the regional economy and industry in a certain region. Only those talents who are integrated into the regional economic ecosystem and play their professional role can become part of the regional human capital; only those who have entered the value chain of a city's industry and are actively playing their professional role are truly transformed into the value of regional human capital.

Measuring the level of regional human capital value can be achieved through two dimensions: one is the equivalent density of core talents reflecting the regional economic ecology; the other is the equivalent amount and magnitude of the distribution of key talents in the regional pillar industry chain.

The level of regional human capital value can be used as an indication of the competitiveness of the city in which the region is located. The equivalent density of talent in the industrial value chain is also an important indicator of the competitiveness of the city's industry.

The regional human capital value index should become one of the elements of the evaluation of the competitiveness of the city's industrial development. The establishment of a regional human capital value index evaluation model can help global city economic development assessment and global integration of industrial development elements.

The regular publication of the global city human capital value index and its ranking will help global cities to identify their own development endowments, ote the global flow of various production factors, as well as various cities to plan the direct goals of economic development according to the level of human capital value they possess.

4

-THE FOURTH-

Building Human Capital Service

An industrial ecosystem that enables the emergence of new industries

The basic meaning of human capital services is to help individual human capital, enterprise human capital and regional human capital to understand their value, and to rearealizecial value recognition, social value presentation, and social value payment through the ecological services of various social professional or organizations

All business activities such as talent assessment, introduction, cultivation, retention, activation, financial services, and the operation of the innovation and entrepreneurship environment, which are conducive to the formation of regional economic ecological advantages and industrial core competitiveness, together constitute regional human capital services.

The human capital service industry is driven by the government's industrial policy, industrial planning,d industrial operation, through the creation of a good business environment for talent innovation and entrepreneurship, including human resource management consulting, human resource services, talent assessment, talent data, financial services, education and training, health promotion, intellectual property rights, science and innovation acceleration, dual recruitment and attraction, and talent value trading.

Promoting the development of the human capital service industry will effectively promote the transformation of human capital value into practitioner competitiveness, enterprise competitiveness, and regional competitiveness.