Advantages of the human capital model

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A company that decides to implement such a model gains a team of employees who are very loyal and always committed to the tasks assigned to them. In addition, it minimizes the risk of unhealthy competition, which can spoil the working atmosphere. Specific character traits and behavior are often valued more than professional experience. For this reason, young people who have just started their careers are eager to be hired. They do not have bad habits, which makes the learning of a new employee faster, more efficient and in line with the needs of the company.

The employee has access to courses, training or workshops philippine cp number aimed at improving his or her skills. The company cares about the well-being of the team and therefore supports the development of employees' individual passions. Layoffs are avoided. One of the main features of this model is that it focuses on long-term cooperation. In case of difficulties in performing the assigned tasks, help and support or a possible change of position is offered. A comprehensive package of incentive systems is also not forgotten to further encourage the employee to improve his or her performance.



Is there a lack of human capital in the model?

Unfortunately, the model is not without its drawbacks. The company's personnel policy generates high costs due to the need to invest in employee training. In addition to the financial outlay, it requires patience, as it is a long process. On the other hand, good team relations can discourage employees from competing with each other. This reduces their productivity and, consequently, lowers the quality of the services offered by the company. [5] In addition, internal recruitment is often practiced, which, although cheap for the company, limits the flow of new ideas and proposals from new recruits.