CGF ARTICLES, OPINIONS & EDITORIALS

Human Capital and Talent Management: Sustainable? (2012-06-25)

February 19, 2015  3609  3609   

Even worse, the talent found within the organisation’s Human Capital is rarely understood.  The elements associated with the organisation’s Human Capital and talent is often seen as an ‘intangible asset’, and not factored as a value item on the balance sheet.  Being two sides of the same coin, risk may represent -- on the one side -- a negative downward spiral and talent -- on the other side -- a positive upward spiral.  It is only when these two components are integrated, related or subtracted that one can truly prove (or disprove as the case may be) whether the organisation has a positive investment in its Human Capital, whereupon the organisation may then claim to be sustainable in this critical area.  Protecting and managing the organisation’s Human Capital -- against the backdrop of its other enterprise risks -- is essential.  Failing to manage all the organisation’s risks can profoundly influence an organisation’s ability to create and promote the organisation’s value, furthermore being able to provide a credible Integrated Report which comprises a holistic view of the organisation’s economic, environmental and social performance.

Managing Human Capital and talent management as a risk factor within the organsation is a dual process; rather ironically when an employee health or wellness programme is implemented in an organisation, it can be completely mismanaged and instead of creating value, it destroys value and negatively impacts employee morale.  To this end, many organisations implement workplace wellness programmes purely to protect the organisation from losses such as absenteeism, presenteeism, workers’ compensation payouts, rising health care costs and expenses related to litigation.  Unlike the reactive approach, organisations could achieve much more than a defensive wellness programme and seek to derive greater benefits where the Human Capital risks are integrated within the strategic vision of the organisation that amplifies value creation, improved return on investment (ROI) and a more sustainable, happier workforce.  Needless to say -- through this proactive approach -- an informed stakeholder who ponders the contents of the organisation’s Integrated Report, will quickly distinguish the manner in which the organisation’s Human Capital;

• creates sustainable workplace wellness,
• unlocks true value from its workforce,
• measures and assesses the value of its workforce as a component in the balance sheet, and
• builds a positive and sustainable workforce through talent management