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Human capital consulting refers to a process whereby an organization hires consultants well-versed in the art of people management to help organize and consolidate employee-related issues. The process of human capital consulting includes topics like the type of remuneration to pay the various employees, development of criteria or yardsticks for the selection of employees, and the development of a plan aimed at ensuring smooth succession in the organization. Also, human capital consulting involves the development of an organizational structure or corporate culture that allows for the inclusiveness of employees in an organization and employee welfare.
Human capital consultants are professionals who understand the value of employees to any organization. They understand that the right employee relations and structure can mean the difference between a company’s success and failure. One of the areas addressed through the process of human capital consulting is the important subject of remuneration offered by a company. There is a direct relationship between attractive remuneration packages and the ability of a company to attract the very best employees with a wealth of human capital. For instance, a company that pays the most in a particular industry can be sure of having access to the very best employees with the most human capital investment capable of moving the company toward realizing or even surpassing its stated goals.
Another area that is addressed through the process of human capital consulting is the welfare of employees. A good welfare package can be combined with a relatively good pay structure in order to attract good employees. In this sense, the welfare package could make an otherwise average pay structure more acceptable to more top notch employees who would otherwise not consider the offer. For example, a company might combine an average pay structure with benefits like free daycare for employees, a comprehensive health insurance, retirement packages, incentives like company cars and other features like more flexibility in their work schedule.
One of the most important factors in human capital consulting is the development of workable and effective criteria for the selection of employees. The human capital consultants analyze the different positions available in the company and develop appropriate tests and interviews aimed at helping the company in its selection of employees. They also develop strategies aimed at ensuring that there is an effective succession structure so that other employees will replace outgoing, discharged or retired employees. This is important because it prevents a situation where the exit of anyone in a key management position will create a vacuum in the company.