How High-Performance Working and Investment in Human Capital can Impact on Organizational Practice

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High-performance work is an approach to management that concentrates on improving employees’ skills, abilities, and motivation in order to increase overall organizational productivity. This strategy entails creating a helpful and engaging work environment that promotes employee development, providing continuous training and development opportunities, and providing competitive compensation and benefits packages (Caruso,2020).

On the other hand, investment in human capital refers to an organization’s investment in its employees through training, education, and other forms of development. This investment is intended to improve employee skills and knowledge, which can boost productivity and competitiveness (Caruso,2020). The combination of the two can lead to a number of positive outcomes for organizations which include:

Enhanced productivity

For example, an organization that provides ongoing development and training opportunities in the current technologies and tools to its employees can improve their efficiency and productivity (Fry,2020).

Employee morale and engagement have improved.

Employee motivation and engagement can be enhanced by offering opportunities for growth and development, resulting in higher levels of job satisfaction and lower rates of turnover. A company that provides its employees with flexible work arrangements and opportunities for skill development through training and mentorship programs, for example, can create a positive work environment and retain top talent (Tang,2018).

The advantage in the marketplace

Companies that make investments in their employees’ development can distinguish themselves from rivals and secure a market advantage. A company that invests in the development of its sales team, for example, through regular skills training and sales coaching, can improve its competitive edge and win more business (Tang, 2018).

improved talent management

Organizations can attract and retain top talent by focusing on employee development, and improving their ability to manage human capital successfully. For example, a company that provides a clear career progression path and opportunities for advancement to its employees can attract and retain top talent, thereby improving its overall talent management practices (Tang,2018).

Innovation and creativity

Due to the provision of development programs such as continuous training, employees are equipped with the necessary skills and knowledge to be efficient in their work which means they can come up with new innovations and creative ideas (Tang,2018).

References

Caruso, D., 2020, What is High-Performance Working? – Beagle HR Outsourced HR Support Consulting. Available at: https://beaglehr.com/2020/05/29/what-is-high-performance-working/.

Fry, W., 2020, The Benefits of a High-performance Culture. Available at: https://www.linkedin.com/pulse/benefits-high-performance-culture-wayne-fry.

Tang, T. W., et al. (2018). The benefits of high-performance human resource practices in the implementation of an artistic strategy in the hotel industry. In Handbook of Human Resource Management in the Tourism and Hospitality Industries (pp. 391-414).