Maximizing human capital

That condo in Vail you rent out half the year? Not your best asset. The modest stash you put away for retirement? Not your best asset. That 40-hour per week job? Now you're talking.

It might come as a surprise, but "human capital" -- read, earning power -- is a worker's best asset. Americans who spend considerable time and energy managing investments might be neglecting the financial resource that is most in need of protection and nurturing.

In the work force, the definition of skills and talent has changed dramatically. In addition to higher education, necessary skills now include networking and relationships.

Staying current with skills, keeping up with networking and being prepared for changing employment relationships are several ways to preserve human capital, said Jane Young, a certified financial planner at Pinnacle Financial Concepts Inc.

For instance, people should evaluate whether they are getting paid as much as they should be -- or if they could earn more at a different company, she said. And they should set goals, stay "up to speed" with what's going on in the industry and make sure they're in the right career for their skills.

"If you are absolutely miserable at your job, you're probably not as successful as you could be," Young said. "Maybe with a little education, you could do something you'd enjoy more. Increase your expectations, learn to negotiate for a raise and take control of your life."

People also should be "constantly networking," since they'll never know when something might fall through and they'll need a new job.

And -- news flash -- the corporate environment is changing. Employees used to stay with a company for the duration of their careers, but now many switch frequently or freelance. Consultants need to make sure they are appropriately paid and understand the difference in cost structure, Young said.

Without an employer to pay Social Security and Medicaid, a 401(k) match, insurance, benefits, travel expenses and more, the consultant must absorb the costs and structure fees accordingly.

Young is not the only one who touts education, soft skills and flexibility as a means to preserve and strengthen human capital.

"Education is of paramount importance," said Jim Kynor, vice president of operations at Pikes Peak WorkForce Center.

But there are many things workers can do to stay competitive, even if they don't have time for a degree program, he said. Technical or Cisco certifications add value to workers and ultimately to their employers. And within a profession, workers should remain industry current about the latest technologies and methodologies, but also learn skills outside of their specific field to increase the chances of promotion or lateral moves, and be less subject to layoffs.

Workers also need to adapt and be resilient, Kynor said, because they might be required to do new tasks and learn new skills in a rapidly changing business world.

Soft skills

Soft skills are perhaps the most important of all.

"The old adage is true -- you get hired for your technical skills and fired for your soft skills -- or lack thereof," Kynor said.

In his line of work, Kynor hears the major complaints disgruntled employers have: employees not showing up on time, not dressing professionally and complaining about problems without offering potential solutions.

His suggestions for employees: help find solutions, complete assignments on time, communicate well within all levels of the organization, be a team player and learn to work closely with others.

In other words, workers should enhance their relationship and people skills.

One of the best ways to preserve human capital is by networking, said Susan Davis, president of the Colorado Springs Chapter of Executive Women International.

"Don't burn any bridges -- if you want to live and work and raise your family in this community. You need to network and stay involved," said Davis, who also is vice president of Wells Fargo's Wealth Management Group. "Networking organizations are a unique way to use human capital and develop valuable friendships. Relationships formed over the years are strong and get people through tough economic or emotional times."

And relationships and people skills are no longer fuzzy terms for sensitive people. The demand for emotional skills has become mainstream.

"Twenty years ago, we didn't hear about emotional quotient," said Allan Schweyer, executive director and senior vice president of research at Human Capital Institute.

"But most organizations take at least as much measurement of EQ as IQ when hiring or deciding whom to keep or promote. More organizations are using psychological testing and evaluations before hiring or promoting."

So employees need to have a range of skills, including customer service skills, to round themselves out a bit more, since the work force is changing more rapidly than it used to.

"What used to be sufficient 15 or 20 years ago ... is no longer sufficient," Schweyer said. "The bar is being raised for both blue- and white-collar workers, requiring them to bring more to the table if they want to get or keep a job. And people get ahead more by having emotional skills."

Copyright 2008 Dolan Media Newswires
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