‘Human Capital: Chefsache!’

In a world where business performance is under constant pressure and the search for talent is becoming increasingly challenging, one factor is proving ever more critical to success: human capital. Without diminishing the importance of technology, research shows that it is people who make the difference and drive business productivity. At a time of persistent labour shortages and changing attitudes towards work, employees are an indispensable asset – a soft factor with a hard impact.

The Gap Between Words and Actions

Although many companies recognise that human capital is one of the most important drivers of business success, the reality is that there is often a gap between what leaders say and communicate through their policies about the importance of people, and what they demonstrate in their day-to-day actions.

Fortunately, many companies are already making significant progress, with numerous initiatives underway. At the same time, these initiatives often operate in isolation, or responsibility for finding solutions is left to HR, middle management or the teams themselves. Many human capital challenges are becoming increasingly complex and strategic in nature, as they directly affect business models, operations, and the quality and continuity of core business processes. As human capital challenges become ever more closely intertwined with broader strategic considerations, leaders must step up and take responsibility.

Navigating Paradoxes

No leader questions the importance of human capital. Yet in practice, leaders approach it in very different ways, particularly when the pressure is on. We demonstrate that investing in human capital pays off – provided the right choices are made. And while this is easier said than done, Human Capital: Chefsache offers practical guidance on how to make a difference.

This is essential, because leaders are constantly challenged to reconcile seemingly conflicting realities and navigate human capital paradoxes. The book explores how to make the right trade-offs through four paradoxes relating to performance, management, the employee value proposition and potential.

Future Fit Is Human Fit

We provide leaders with a compass to navigate the complex human capital challenges of today and tomorrow. It helps them continually determine where they stand when faced with competing priorities. How do you make the right trade-offs, and what leadership behaviours, including leading by example, are most effective?

The practical guidance in this book is grounded in both scientific research and real-world insights. These insights draw on the candid experiences of leaders from 12 companies included in the study, who were willing to share how they navigate the difficult choices and trade-offs they face.