Harnessing the Return on Human Capital Investment

Updated: Jun 23

The true value of employees to an organization cannot be emphasized enough. In simple words, employee performance is directly linked to the success of the company. Sensible business owners understand just how pivotal employees are and the key benefits of excellent employee performance.


Considering their unique importance to any business, it is vital that business leaders identify how to keep their employees motivated and engaged. There are some sure ways to accomplish this, some of which are discussed here.


“Entrepreneurs need employees who are well motivated in order to carry out their tasks efficiently, so they benefit the business.”


Competitive salary


There are various ways that candidates judge a specific job opportunity. Some are seeking a collaborative environment, while others are looking for rewarding roles. One of the main attributes that candidates are always looking for is an excellent salary package.

This is crucial not only for the personnel, but it is equally important for the business as well. Paying a good salary enables a business to attract the best talent. The better the talent, the higher their chances of succeeding in their role, which in turn benefits their employer.

Great employees know the value of their work, which is why a competitive salary becomes all the more significant. Of course, if a company is willing to invest in their employees with a sizeable economic contribution, then they will also reap the benefits themselves.

Stellar candidates are more dedicated than others and are also relatively more competitive. Paying competitive salaries improves their level of productivity as well. They feel valued when they are given an adequate salary and the companies that employ them can ask for a higher level of work in return. It’s a win-win scenario for both concerned parties.

Fringe Benefits


A high salary is not the only economic incentive that a company can offer its employees. Fringe benefits, are any kind of compensation that companies provide their employees apart from their salaries. Fringe benefits could include a company provided vehicle, medical insurance and staff discounts among others. While some of these may be provided to all employees, other options like cars are kept for higher ranking employees and can be seen as a reward for their excellent work. Generally, companies can provide some form of fringe benefit at every work level.


it is vital that business leaders identify how to keep their employees motivated and engaged.


Other investments


Beyond investing economically in employees, organizations can also find other methods to encourage their workforce. For example, they can keep their employees engaged by allowing them to grow into their role. One way to achieve this is by letting them undertake courses or diplomas that are sponsored by the company.

This is quite different from their salary or perks and gives them a different kind of incentive. Employees will be motivated to grow by undertaking such learning opportunities. This is an effective way to protect a company’s assets and ensure that there is human capital investment and economic growth in the long run.


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