Human Capital Management: Is your Workforce Strategy aligned with your Business Objectives?
Whether your workforce is local or global, in the office or mobile, as a project-based business you have a critical dependency on your human capital. Your business depends on a quality workforce that can deliver top-notch services or products to your clients. Similar to how product-centric businesses have patents and IP to protect, your workforce is the “special sauce” of your firm. It’s the knowledge and expertise of your workforce that represents your firm’s brand and enables you to deliver high quality, projects to your clients.
To continue to grow and steer your business to better, more innovative and profitable projects your human capital management strategy must be closely aligned to your business objectives.
Key Elements of Human Capital Management
The goal of Human Capital Management is essentially to produce economic value for an organization by focusing on the following three key areas:
Workforce acquisition is the way people are brought into your organization, whether they are full-time employees, part-time employees, contractors or seasonal employees. This includes people brought in through standard recruiting processes, M&A, joint ventures and so forth.
Since your workforce represents a large number on your company’s balance sheet, it is important to manage it efficiently. Workforce management includes processes like payroll, time & expense, benefits enrollment and administration, and compensation.
Workforce Optimization is the process of looking at your entire workforce and mapping that to your organization’s current and future business needs. This helps to predict the skillsets your organization will need for future work and prepare you to meet those needs.
Government contractors face unique challenges when it comes to human capital management. They are more dependent on subcontractors and face more scrutiny on labor costs. They are competing for talent with the commercial sector and as a result turnover rates can be higher than other industries. In addition, they are often using outdated or manual HCM systems.
Tackling Common Business Objectives
Before talking about how to align your workforce with your business goals, it’s important to understand common business objectives. Most organizations are tackling several of these at once:
- Grow the company: Are you trying to grow organically? Through merger or acquisition? Expand into new markets?
- Sell the company: Are you building up your company to sell it off?
- Diversification: Are you trying to diversify into other government agencies or areas of expertise?
- Operate more efficiently: Are you focused on improving “on-time, on-budget” project delivery to win more repeat business?
- Protect current contracts: Are you taking a more defensive position to protect your current contracts?
- Increase shareholder value: Are you public? If so, you’re likely focused on driving shareholder value.
- Expand globally: Are you interested in leveraging your government expertise to expand globally?
- Be more competitive: Are you facing more competition? If so, you’re probably focused on ways to beat the competition.
Aligning your Workforce to your Business Objectives
As you review your business objectives think about workforce strategies to achieve these goals. Here are a few examples:
- If one of your key business objectives this year is “growth”, capturing and retaining talent will be key. If you are trying to attract millennials staying up to date with the latest technology is critical. These workers want systems that enable mobility and provide fast, accurate information.
- If you’re focused on ways to beat the competition – treat your employees like investments. Develop career paths, learning programs and opportunities for growth. If you don’t, they will go to a competitor that does.
- If your business objective is to sell your business, make sure you are using one integrated system designed for government contractors that provides accurate and detailed financial, contract, pipeline and workforce information. This information will help with valuation, due diligence processes and acquisition processes.
As the industry leading software provider for government contractors, Deltek’s Human Capital Management solution is integrated with Deltek Costpoint, the industry leading ERP solution for government contractors. Only Deltek provides a project-centric, industry-specific approach to HCM with everything government contractors need.
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