Understanding the differences between human resources and human capital.
Because there are differences!
Sometimes the words "human capital" are used instead of "human resources", because it sounds trendy.
But don't be duped!
They cover different realities, mindsets and different practices!
And this is what this presentation is about.
Enjoy!
5. So, let me share with you
a conversation I had.
Differences between
Human Resources and Human Capital
6. A friend of mine
financial job
(prestigious French education)
asked me
human capital practitioner
(master level + various certifications)
Differences between
Human Resources and Human Capital
7. what difference I make
between
Human Resources and Human
Capital.
Differences between
Human Resources and Human Capital
8. So I asked him:
what difference do you make
between
“resource” and “capital”?
Differences between
Human Resources and Human Capital
10. About “capital”
My friend: a capital must be GROWN
Me: the purpose is to increase
your capital?
My friend: yes!
11. About self-consideration from self point of
view
Me: so, as an employee, how do
you prefer to consider yourself:
resource or capital?
My friend: I’m a human being, Xavier!
As an employee, I’m not just
a facility!
But, I’m not sure what capital
I represent, I worth...
12. About self-consideration from organization
point of view
Me: as an employee, how do you
think you are considered:
resource or capital?
My friend: not sure…
maybe as an expense…
16. What is Human Capital
not about?
Not about payroll
Not about tax and tax optimization
Not about working hours regulations
Not about compensation
Not about signing recruitment contract
Not about supervising the training
attendance sheet
Not about employment laws
…
17. What is Human Capital
not about?
All these are about
management of
resources
… management of
human resources
25. Following challenges
- war of talent
- succession planning
- effective leadership
- employee engagement
- motivation
- retention
- feeling of recognition
- culture problems
- cross-culture problems
- lost productivity
- lost creativity
- time, money and resources wasted
-…
26. So what makes the human capital?
They are different layers,
different angles/perspectives
to solve different problems.
27. Mainly human capital
is not tangible
but observable
in terms of results.
So what makes the human capital?
28. It’s not tangible because human mind is
one of the most complex things in the
Universe.
So what makes the human capital?
29. “If the human brain were so simple that
we could understand it,
we would be so simple that we couldn't.”
~ Emerson M. Pugh
So what makes the human capital?
30. To make things simple and accessible,
your human capital
(as an individual or as an organization)
is the sum of:
So what makes the human capital?
31. - Thoughts, feelings, beliefs and
perceptions regarding self and others,
emotional intelligence, personal maps
of the words, personal and professional
values, higher sense of purpose, different
layers of culture,…
So what makes the human capital?
32. - the Transformation of previous list
in terms of actions and behaviors –
social behaviors, professional
behaviors- , the ability to produce
results and what kind of results,…
So what makes the human capital?
33. - the conceptual thinking,
value judgment,
decision making styles,
the ability to see how things works
together, …
So what makes the human capital?
34. All these are Identifiable and
Measurable; there are
Ways to Develop them!
So what makes the human capital?
36. toto aalignlign, to, to ooptimizeptimize thethe hhumanuman ccapitalapital
with thewith the bbusinessusiness ggoalsoals and businessand business nneedseeds
to achieveto achieve ssuperioruperior pperformanceerformance,,
and so, by the way, to improve the quality ofand so, by the way, to improve the quality of
life inside and outside the organization.life inside and outside the organization.
Human Capital Purpose
41. - and answering a global demand from
individuals* requiring for
“Less Finance and More Human oriented
decisions and actions in business
life”
* wherever they are from – from developed countries to emerging economies
(such as Bangladesh)
“Putting People First”
42. So, >, = or < ?
Some people asked me:
So,
Human Resources
>, = or <
to Human Capital ?
43. They are the
2 different faces
of the same coin.
So, >, = or < ?
47. Management without leadership:
things happen, but what for?
Loss of meaning
loss of motivation and
then ruin of everything
on the long run …
So, >, = or < ?
48. ? Human Capital practitioners
Some people asked me:
“Are HR professional
more predisposed
to be HC practitioners?”
49. Do you think years of experiences
in payroll,
in recruiting process,
…
are particularly relevant or more than
… (let’s say) sales or public relation
experiences?
? Human Capital practitioners