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Human capital analysis refers to the process by which a company evaluates and manages the human element of its operations. This includes the process for identifying the necessary talent, the process for the development and training of prospective employees, and the method for assessing the current employee pool with the aim of figuring out the best methods for utilizing their skills. Tips for human capital analysis include an assessment of all the factors relating to human capital in totality, understanding the areas of need in the organization, and setting up a process whereby human capital can be monitored as an ongoing process.
A consideration of all the processes that make up human capital is necessary in order to reach an accurate conclusion. This means that human capital management involves factors like the identification of company needs or requirements, the sourcing for qualified employees to fill the identified needs, the training of employees through various means, and the promotion and transfer of employees to areas where their skills are most needed. All of these factors must be coordinated in such a manner that they will yield effective results, rather than tackling them on an individual basis.
For instance, a company with an employee shortage in some departments will rely on the human resources department to carry out the necessary procedure for locating suitable employees to fill the vacancies. This will necessarily involve advertising the available positions through various means, setting the dates for an interview, following up with the selected individuals, and positioning them in departments where their talents are most needed. It is through the interview process that the human resources personnel discover the potentials of the prospective employees. The process of human capital analysis will allow them to identify the strongest candidates for the available positions.
Making arrangements for the further training of employees through training sessions, personal development resources and other tools is another function of the human resource department that is related to human capital analysis. Human capital analysis helps to identify employees who may have strong skills and training in one section of a position but need further training in other related requirements. For instance, an individual with excellent theoretical managerial skills may need more training in the leadership aspect of the position or in the personal development areas of interpersonal communication. Effective human capital analysis and management will help the human resources department identify such candidates and provide the required training.