Human Capital Concept Encourages Sense of Belonging among MUC Employees
Ever heard of Human Capital concept for companies? Many companies have adopted the concept, with MUC being one of them. Many changes have been made since MUC implemented the concept. How did it all begin?
In 2017, following the annual Human Capital National Conference (HCNC), the management of MUC decided to implement the Human Capital concept in the work environment. The concept was considered appropriate to apply because one of the core values of MUC is to be a humane company, a company prioritizing humane principles. Previously, MUC was just the same as many other companies, namely implementing the Human Resource Department (HRD) concept in organizing its human resources.
Surely, the HRD and Human Capital concepts differ. Function in the HRD concept is limited to organizing the administrative tasks and providing the development facilities for employees, starting from paying salaries, organizing leaves, evaluating all divisions, to preparing training programs for employees. On the other hand, the Human Capital concept functions not only to organize administrative tasks and provide training for employees but also facilitate, accompany, participate in coaching, and assist in solving employees’ issues to develop their skills and potential.
The Human Capital concept utilizes three approaches, namely coaching, counseling, and mentoring. These approaches are different from the HRD concept, which only utilizes direction or one-way instruction in solving problems. With those main tools in hand, the Human Capital approaches are not only limited to providing instruction.
When Human Capital Became the Option
In the transformation process in 2017, Erry Tri Merryta, the Director of MUC Consulting said that there were hardly any cons back then as the majority of MUC’s management and employees have shared the humane values and are open to changes.
However, that did not necessarily imply no problem arose in the transformation phase. The most difficult process was finding a leader mastering the coaching, counseling, and mentoring approaches. During six years of implementing the Human Capital concept, such problem often arises. Surely, changing the habits and mindset of an individual to assist other employees is not easily achieved. MUC’s Human Capital Division thus has the responsibility to equip the leaders with coaching, counseling, and mentoring skills.
The next adjustment is harmonizing every individual’s mindset. One question is raised among employees, “Why does Human Capital Division need to step in?”. In an interdivisional or intradivisional problem, Human Capital acts as a hub or intermediary between employees or divisions in case of conflicts. What will Human Capital Division do when a problem in company divisions arises? Human Capital will create a forum that brings together the parties concerned, so a discussion is set up and the problem can be solved. As a result, employees finally realize that the Human Capital concept implemented in MUC has accelerated problem solving, and provided understanding and trained employees to be proficient in handling conflicts.
Another issue to adjust is that every decision of the management should prioritize the principle of humanizing humans. Human Capital ensures that all decisions, starting from the treatment of employees, the disciplinary decisions, the financial budgeting, to the focus on employees’ development investments, should be in accordance with the Human Capital principles.
Human Capital perceives employees as investment-worthy assets. One of the investments is by developing soft and hard skills with more personal and directed approaches. The real application of this effort is providing training programs in accordance with the employees’ needs, scholarship programs to continue higher education, internal Mental Health Service Unit, etc. MUC’s Human Capital Division believes that if the employees develop, the company or organization will also flourish.
Developing those skills are definitely costly. The company needs to allocate a specific budget for employees’ development. For companies adopting the Human Capital concept, the cost should not just be considered expenses incurred, but a long-term investment. This view is different from the HRD concept, which considers employees as burdens and resources that will ‘deplete’ after continuous utilization. In contrast, the Human Capital concept considers employees an investment that will develop beneficially in line with the effort made.
As a consulting firm, the products of MUC are not tangible goods but knowledge, which can be honed into a better and higher quality service. Therefore, the company should encourage the employees to always enhance their knowledge to produce better services, which in turn, will increase the company’s value.
Shifting to Human Capital, MUC’s Employees Have Sense of Belonging
MUC has been adopting the Human Capital concept for the last six years. Several benefits have been reaped from the adoption of the Human Capital concept as follows.
- The employees’ attitude shows initiative and a sense of belonging to the company
The employees do not merely comply with their superordinates, but they are also willing to strive with the company. No apathy arises towards the company because they feel treated more humanely. Therefore, trust and comfort grow towards the company. - Turnover is more controlled
Many companies suffer from high turnover due to the entrance of generations Y and Z into the workforce. These generations are known for the stereotype of being unable to work for an extended period in one workplace. However, MUC hardly experiences the problem. For generations Y and Z, the Human Capital concept provides them with the freedom to express their idea, opinion, and creativity. - Innovation and digital transformation programs are massive
The Human Capital concept makes employees feel heard and safe to express their opinions, which is reflected in MUC’s innovation program where the innovation stems from the employees’ ideas. Employees with various backgrounds of divisions and positions voluntarily spare their time, thoughts, and effort to execute their ideas for the advancement of innovation and digitalization in the company.
All the changes are achievable because the management always tries to develop an open, humane relationship. As a result, a harmonic and trustful relationship between the management and employees is formed, which will make the employees feel comfortable and safe to innovate and contribute to the development of the company. The role of Human Capital is significant to develop the foundation and bridge the employees with the company’s management. The Human Capital approach is the key to success in establishing the relationship.
