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Hiring a fractional human resources (HR) team can help your company improve its HR functions. But what is fractional HR? If you’re thinking it means outsourced HR, think again. Many people think that outsourced HR and fractional HR are—and mean—the same thing.
At Culture Works, we think there’s a big difference… Let’s dive into why.
What’s the Difference between Fractional HR and Outsourced HR?
Let’s break down the primary differences between the two.
Fractional HR
Think of it like this: Fractional relationships are more like adding another team member (or a few team members!) to your organization on a part-time basis.
This considered, hiring a fractional HR team to partner with your in-house HR stakeholder or team involves a more strategic partnership. In a fractional relationship, the fractional team acts as a member of your organization, fulfilling the roles and responsibilities of traditional HR members but without being full-time company employees.
In short, fractional HR services are like hiring part-time employees to assist your existing team. It’s a partnership rather than a replacement. At Culture Works, we believe fractional human resources can help optimize:
- Your company’s human resources
- And its company culture
Outsourced HR
Outsourcing your HR is a bit easier to understand. Many aspects of business can be outsourced in today’s world. For example:
- Marketing
- Accounting
- Payroll
- IT
- And of course, human resources!
All departments can all be outsourced. So, what is outsourced HR?
According to the Society for Human Resource Management (SHRM), “HR outsourcing is the use of an outside service to handle some or all of your company’s HR tasks. HR outsourcing functions [can] include:
- Payroll processing
- Employee benefits administration
- And other business needs unrelated to day-to-day company functions”
Most of the time, outsourced HR means completely relying on the outsourced team instead of an in-house team. In some cases, however, outsourced HR can be a strategic partnership between your existing team with an HR company that performs similar or complementary functions.
Most likely, however, an outsourced team is often a replacement for an in-house team or role.
Why Should You Consider a Fractional HR Company?
So, why should you consider a fractional HR company? Here are three reasons why your business might consider partnering with a fractional HR company (like Culture Works!)
- It Saves You Money
CEOs and other business leaders strive to make their company the best possible place to work. In order to do that, leaders need to invest in operationalizing their culture—plus there’s no business owner who wouldn’t like to cut costs where they can.
Hiring a fractional HR company is a cost-effective way to optimize your human resources. Hiring a fractional HR team can help reduce the cost of full-time employees while optimizing your existing team’s functionality.
In fact, did you know that the cost of hiring one full-time, in-house employee (with salary, benefits, etc.) can cost the same as receiving an entire fractional team?
- It Provides Additional Expertise and Resources
A fractional HR team can help provide additional expertise and resources to your business.
When you hire a team of human resources experts, you receive a depth of expertise that is different from hiring just another in-house team member. With an entire fractional team, you open yourself up to a greater network of people who can help.
You also give yourself access to the resources that only HR professionals who have been in the industry for 10+ years have access to. Who wouldn’t want that level of expertise and resources?
Our team at Culture Works is comprised of HR experts with years of experience under their belt, including:
- HR Consultants and Generalists
- Culture Operations Partners
- L&D Specialists
- Culture and Branding Operation Specialists
- And more
Each and every member understands how to integrate company culture with HR operations in order to create a successful company. Read on to learn more about what we do at Culture Works.
- It Can Cater to Specific Needs
Fractional teams can tailor their game plan to your specific needs as a company.
For example, at Culture Works we can perform assessments prior to our engagements. This helps tailor our approach to your company’s needs. Based on these assessments, we decide where our team can help your HR department operationalize its culture, talent, and HR.
So, there you have it… The difference between fractional HR and outsourced HR! Interested in learning more? Read on to learn more about when to hire a fractional HR team.
The Top Challenges HR Teams Face in 2021
NewsThe Top Challenges HR Teams Face in 2021
The year 2020 will be remembered as a year with that involved massive changes that altered the workforce as we know it. As most companies transition into remote work, and the greater responsibilities of companies to ensure diversity and inclusion remains a prevalent issue, human resources has taken on a completely different role.
Human resources is no longer simply processing employee paperwork, it’s about fostering a culture that matters, ensuring the safety and wellbeing of employees, and guaranteeing HR compliance in everything you do.
With that being said, as we look to the future of human resources, it’s important to understand some potential challenges and changes we may face.
In order to ensure a company culture that aligns with your organization’s values, you must first attract and retain high-quality talent.
As we look to 2021, the standard for attracting and retaining top talent has changed. Hiring can be one of the most challenging aspects of human resources for some companies. While compensation will still be an important part of an employee’s drive to work for your company, there are a few more aspects that need to be addressed. Some employees may feel more attached to development opportunities, flexible working conditions, or even a chance to do good in the world.
It’s important to identify what makes your company unique within the job market, in order to align with employees who have the same values. Value and role-aligned employees stay in their jobs.
At Culture Works, we help clients create a “bench” of great talent, so when you’re ready to find a great team member you know where to start your search. We believe in efficient and effective recruiting, which all starts with your job descriptions.
Articulating your job description saves everyone time, money, and stress. In addition, we carefully review and screen each candidate, and we administer customized assessments while delivering value and role-aligned people to fit your needs.
Pay attention to high churn rates and employee turnover
Emplify’s 2020 Employee Engagement Trends report found that 73% of respondents are open to new career opportunities, 62% of those respondents suffer from burnout at work. In order to ensure your employees stay engaged and excited about their work, employee wellness needs to be a top priority.
After all the mental anguish we experienced in 2020, your employee’s health and wellbeing should be top of mind in everything you do. Plus, it will actually benefit your business in the long run, after all, employee wellbeing is intrinsically linked to productivity.
In order to put this into practice within your organization, your employees have to feel comfortable talking about their health and wellbeing. Once your employees feel comfortable about communicating their need for a mental health day, you can start developing processes to ensure that workloads are reasonable. With remote work opportunities, it is easier to offer flexible work opportunities and create a company culture that supports a strong work-life balance.
Encourage learning and development
Developing the next generation of leaders is an important aspect of human resources moving into the future. Some businesses spend billions of dollars in leadership development training that their employees are dissatisfied with. It’s important to ensure that you have the proper training programs in place that align with your employee’s needs and wants.
Most employees would prefer flexible learning opportunities that utilize real-world applications as much as possible. Try to implement innovative approaches to learning new skills, such as online learning, on-the-job coaching, and virtual training.
Investing in training and development for your entry-level employees is a strategy that is gaining more momentum. If you train and develop your employees from the beginning, they are more likely to remain with your company and perform stronger in their roles later on.
Be aware of workplace bias – both unconscious and conscious
Workplace bias remains an issue that impedes the hiring, development, and promotion of underrepresented groups. While most companies have made strides in this aspect over the years, there is still quite a bit of room to improve.
In order to ensure you’re hiring employees with no bias, work to ensure you hire employees based on job-fit metrics, rather than demographics. Before you interview candidates, be sure to evaluate their skill sets and work to gain insight into their behavioral patterns based on their resume.
Once companies hire these employees, they need to focus on retaining them by ensuring their workplace is inclusive in every aspect. In order to be sure your workplace remains inclusive, you must put strong policies in place to protect employees from potentially negative experiences and behaviors. Once you’ve created these policies it’s important to train your employees on these policies to ensure employees are aware of their biases and how not to act on them.
At Culture Works, our culture operations specialists are equipped to help your organization create an inclusive company culture that aligns with the values of your company. We help operationalize this culture to create success from within.
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July 13, 2020/by Amanda RogersWage and hour issues with a remote workforce
NewsWage and hour issues with a remote workforce
As we approach nearly a year of COVID-related closures and employees working remotely, it’s safe to say that this may be the new reality. Twitter, Square, and Facebook have all adopted an indefinite work from home policy, while other major companies have pushed their reopening to later in 2021. As most employers have discovered this year, employees can still perform their job functions effectively when working remotely.
In fact, according to the State and Work Productivity Report, 65% of employees believe that working remotely would increase productivity- and their bosses agree!
With this major shift in the usage of the physical office, employers need to be aware of the potential liability remote work holds. Specifically, wage and hour compliance with both exempt and nonexempt employees.
What’s the difference between exempt and nonexempt employees?
Exempt employees are employees who are not entitled to overtime pay, regardless of the number of hours worked in a day or week. Non-exempt employees, however, are entitled to overtime pay if the employee works more than eight hours a day, or forty hours a week (depending on the state).
Timekeeping practices and “off the clock” work for non-exempt employees.
One of the most prevalent concerns for employers with non-exempt employees working remotely is timekeeping. In a pre-COVID world, many employers never had to worry about non-exempt employees’ timekeeping, as when they were in the office, they were working. As these employees continue to work remotely, it’s important to revisit your timekeeping practice requirements, if you haven’t already!
A few steps you can take to minimize your risk and continue to adapt to the ever-changing workplace environment are as follows:
Reiterate Timekeeping Practices
If you haven’t already, ensure you reiterate timekeeping practices in writing to all employees. This should have a clear indication that timekeeping will be enforced to the same extent as when employees are working in the office. It’s important to note, that if a non-exempt employee is working outside his/her working hours, it needs to be addressed promptly!
Ensure you communicate with management and supervisor-level employees.
It’s important that managers and supervisors understand that they cannot communicate with non-exempt employees outside of their set schedules. Clear boundaries must be in place to ensure your non-exempt employees don’t need additional pay or claim they were not paid for time worked.
Update all timekeeping systems and ask employees to certify their time worked
Due to employees working at home, some timekeeping systems may need to be updated or revised. New protocols may also need to be put into place, such a reporting and certifying their time worked. Employees should be asked to record their time each day, report it to their supervisor, and certify that the amount recorded is accurate and illustrates their time worked. Should questions or claims arise regarding overtime, this record will be helpful.
Make sure your telecommuting policy is solid.
Consider creating, or revising an existing telecommuting policy to reflect your expectations around remote work. This policy should include expected hours, rest and lunch breaks, timekeeping procedures, and communication with managers procedures and protocols.
With this policy in place, it’s important not to forget meal and rest breaks must be provided and enforced in the manner they were in the office. These requirements may vary depending on the state, so ensure your state-specific guidelines are being followed.
Be aware of potential expenses incurred when working remotely.
Employers who require employees to pay or reimburse the employer for items that are business expenses could lead to a reduction of the employee’s earnings, below the required minimum wage, or overtime compensation rate. Employer’s also may not require employees to pay or reimburse the employer for items provided to a qualified individual with a disability as a reasonable accommodation while telecommuting. States, like California, require employers to reimburse employees for reasonable and necessary business expenses, so it is important to be aware of your state-specific requirements to ensure compliance.
How have “temporary” moves affected these regulations?
While the typical remote work hurdles still apply in regard to wage and hour compliance, the government mandates and public health concerns bring about a different aspect of compliance that may be of concern. Some employees have relocated during the global pandemic to areas of lower risk of infection. These “temporary” moves may cause the employer to become subject to the complexities of multi-state employment, which presents even more challenges.
Breaks and Overtime
Many states, California included, assert authority over work performed anywhere within the jurisdiction. These states have their own overtime laws that do not mirror the Fair Labor Standards Acts, so if any employee moves to one of these states new overtime requirements may be necessary.
Similarly, an employer may fail to provide or keep a record of the specific meal and rest breaks required by the statutes where an employee has undertaken remote work.
Paystubs
In some states violations of paystub rules that outline all the information an employer must include can lead to fines and significant liability for unwary employers. It’s important to understand state-by-state the paystub rules and regulations to avoid noncompliance.
Travel time
Some employers may request employees to return to the office periodically throughout the year. With these requests, the employer may be obligated to reimburse travel time and expenses if the worker has relocated somewhere more distant. As an employer, it’s important to ensure your policies surrounding travel time are clear and communicated.
As an employer working to navigate the new reality of remote work, it’s important to be aware of potential issues that may arise due to the changes. As you begin to rethink your workforce, and how to proceed into the next few years, consider bringing on a team of Culture Operations specialists to ensure your company culture, and HR compliance remains intact with the various changes.
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July 27, 2020/by Amanda RogersUnderstanding New COVID-19 Related Requirements
COVID-19, NewsUnderstanding New COVID-19 Related Requirements
The regulations for employers regarding COVID-19 are constantly changing. Because of this, we wanted to give you a one-stop-shop to all your COVID-19 regulation related questions. Below we highlight the various changes, as well as other resources that expand on the new regulations. Please reach out to the Culture Works team with any questions or concerns, we are happy to help you navigate the various requirements!
New California Covid-19 Related Requirements Effective Immediately
This month brought updated Covid-19 related requirements for businesses in California, including Cal OSHA Regulations, the various California Regional Stay at Home Orders, and updated County Health Orders including San Diego County.
Regional Stay at Home Order
The Regional Stay at Home Order went into effect on December 3, 2020. The Orders place limitations on which businesses can remain open, and under what conditions. For detailed information on the order, including which businesses can be open, visit the About COVID-19 Restrictions webpage published by the State of California.
Cal/OSHA Emergency Regulations to Protect Workers from COVID-19
This emergency standard went into effect on the evening of November 30, 2020, and applies to most workers in California, with the following exceptions: workplaces where there is only one employee who does not have contact with other people; employees who are working from home; and employees who are covered by the Aerosol Transmissible Diseases regulation.
The new regulations require that employers implement a site-specific written COVID-19 Prevention Program (CPP) to address COVID-19 health hazards, correct unsafe or unhealthy conditions, and provide face coverings. When there are multiple COVID-19 infections or outbreaks at the worksite, employers must provide COVID-19 testing and notify public health departments. The regulations also require accurate recordkeeping and reporting of COVID-19 cases. The following resources are available to employers:
California Reopening Requirements
If your company is open for business or getting ready to reopen, make sure to become familiar with the following requirements.
California Family Rights Act Expanded to Apply to Small Businesses
Currently, California businesses with 50 or more employees must provide up to 12 weeks of unpaid job-protected leave to eligible workers under the California Family Rights Act (CFRA) and the Family and Medical Leave Act (FMLA).
Effective January 1, 2021 employers with five or more employees will be required to offer CFRA to qualifying employees. Eligible employees can take CFRA leave for multiple reasons, including but not limited to their own serious health condition; caring for a family member with a serious health condition, including grandparents, grandchildren, and siblings, in addition to parents, children, spouses, and registered domestic partners; and for the birth, adoption or foster care placement of a child (baby bonding).
All eligible employers will need to ensure that their employment policies, including leave of absence policies and employee handbooks, are updated with the new CFRA eligibility and requirements.
New Notice and Reporting Obligations for COVID-19 Workplace Exposures
Effective January 1, 2020 and through January 1, 2023 under California Assembly Bill 685, when an employer receives notice of “potential exposure to COVID-19,” the employer must provide a written notice within one business day to:
The notice must include information of their potential exposure, the disinfection and safety plan that the employer plans to carry out in accordance with CDC guidelines, and provide the employees (and their union, if any) information regarding the COVID-19-related benefits to which they may be entitled under applicable laws.
What triggers the notice requirement?
Who is a “qualifying individual”?
Detailed requirements, including what is considered an outbreak, need to be reported to the Local Health Department & can be accessed on the COVID-19 Infection Prevention Requirements (AB 685) site.
What Do the New Harassment Prevention Training Laws Mean for your Business?
NewsWhat Do the New Harassment Prevention Training Laws Mean for your Business?
California has updated the laws surrounding harassment prevention training effective Jan. 1, 2021
As of January 1, 2021, the laws regarding harassment prevention training in the workplace have changed. The California Fair Employment and Housing Act protects employees from unlawful practices and harassment. Starting in 2005, the law required employers with 50 or more employees to provide at least 2 hours of training and education on the subject of harassment and abusive conduct. This year, the requirement has been adjusted to apply to businesses with five or more employees.
Section 12950.1 of the Government code reads:
“By January 1, 2021, an employer having five or more employees shall provide at least two hours of classroom or other effective interactive training and education regarding sexual harassment to all supervisory employees and at least one hour of classroom or other effective interactive training and education regarding sexual harassment to all nonsupervisory employees in California. Thereafter, each employer covered by this section shall provide sexual harassment training and education to each employee in California once every two years.”
When do my employees need to be trained?
The provisions of the act state that both non-managerial and managerial employees must receive training by January 1, 2021. After January 1, 2021, employees must receive a training refresh every two years. Non-supervisory employees must be trained within six months of their date of hire.
In 2019, California Governor Gavin Newsom signed SB 778 to clarify the discrepancies surrounding the new training requirements for employers. These clarifications extended the deadline to 2021, as well as pointed out the necessity for employers to retrain employees that had been trained in 2018.
One important clarification that SB 778 made is that employers who conducted legally sufficient training in 2019 will not be required to provide further training until two years following.
Seasonal and temporary employees hired to work for less than six months remain the same.
What are the training requirements?
Under this new requirement, employers with five or more employees must provide harassment prevention training for all of their employees. Managerial employees are required to perform two hours of training, while non-managerial employees are required to perform one hour of training.
Employers with less than five employees or contractors are not included in this newly updated requirement.
What should be included in the training?
Employers can provide training in a live classroom setting (which may not be feasible right now), or through e-learning or live webinars. If you choose to administer training via e-learning, the training must provide the trainer’s contact information. Please see the Department of Fair Employment (DFEH)’s online courses.
The Department of Fair Employment lists a few items that must be included in the training you perform for your employees. These include:
What happens if you haven’t trained your employees in time?
If you haven’t arranged for your employees to complete the required harassment prevention training before January 1, 2021, the DFEH will work with you to ensure compliance with the law.
Harassment prevention training is an important aspect of company culture. Your employees must feel safe and secure in the workplace. When they are informed about how to handle potential harassment situations they will feel more confident in your organization to handle these scenarios.
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July 9, 2020/by Amanda RogersHow to Make Your New Year’s Resolutions Last
NewsHow to Make Your New Year’s Resolutions Last
How to make your New Year’s Resolutions last longer than your 5-day juice cleanse.
The New Year has arrived! I think we all can take a massive sigh of relief as we head into 2021. Here’s hoping 2021 has better things in store for us!
With that being said, it’s time to reflect on the past year and create new resolutions for 2021. While surviving 2020 was an accomplishment in and of itself, it’s time to look forward to the upcoming year with optimism and start setting goals for the year ahead! How can you set a resolution that improves your life long-term?
Resolutions have a pretty notorious reputation for being made, and then quickly forgotten in 5 days. Which is where we come into play. Here are a few tips to help your resolutions last well beyond your 5-day juice cleanse.
Start by setting a simple goal.
However big or small, simple goals are easier to keep. Choose one area of your life you would like to focus on, and create an achievable goal. Make your goal clear and concrete. You need to know exactly what you’re planning to change and why.
Your goals may be simple, however they will also likely get you out of your comfort zone to create new healthy habits that improve your life for years to come! Try implementing the SMART goal formula to improve your goal setting. SMART stands for specific, measurable, attainable, relevant, and time-bound
Set a plan.
Once you’ve set your goals, make a plan. Create a few small simple goals within your larger goal to set a realistic plan of action. Once you’ve achieved one of those small goals, you being to build your confidence, which motivates you to achieve more.
Ensure you are set up for success before you begin your new plan. If your resolution is to eat healthier, be sure your pantry and fridge are free from unhealthy food. If your resolution is to run a marathon, be sure you have the proper shoes and attire.
Anticipate potential problems.
There will be obstacles, as there are with any goal, so be prepared for when they come up. When you make a list of the potential problems, you will be better equipped to handle them as they arise. Once you’ve created the list, think up a few ways you can solve them!
Treat yourself
Don’t forget to reward yourself. Once you reach your milestones, plan a few rewards you can enjoy. Whether it’s a massage, a day off work, or your favorite dinner out. Choose rewards that align with your goals.
Don’t be afraid to ask for help.
If, for whatever reason, you fall off the wagon on your goals, your support system is key. Surround yourself with people who are trustworthy and supportive, and explain your goals so they can be there for you. Inform them of ways they can help when things get challenging.
Don’t give up!
Slip-ups are inevitable at some point in the year, don’t let it get you down! Feel proud of your past achievements and look beyond that small hurdle. Those with higher self-esteem and confidence are positioned better to succeed. Forgive yourself for any steps backward, and continue to push toward your goals.
Implementing a few of these tips into your resolution-making this year will ensure your 2021 is full of self-improvement! Our team at Culture Works would like to wish you a happy and safe New Year!
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January 29, 2024/by Amanda RogersOur Employees Share Their Favorite Holiday Traditions!
NewsOur Employees Share Their Favorite Holiday Traditions!
Happy Holidays from the Culture Works team! This holiday season may look different than most, however it is still a great time to take a break from work and spend time with family (in-person or virtually!) Now is time time to prioritize connecting with loved ones, and staying present in the moment.
If we’ve learned anything from 2020, it’s that life can change so quickly, so we need to appreciate all of the gifts we’ve been given. During this holiday season, take time to appreciate the little things, and remain in the present moment with family, friends, and your loved ones.
In the spirit of the holidays, we’ve asked our team at Culture Works to share a few of their holiday traditions, both new and old! Here are a few ways our team celebrate the holiday’s:
Kristi:
“We love having our family elf, Mickey, come visit and surprise us every morning with funny Shenanigans. We also love watching Christmas movies and cuddling on the couch with our favorite holiday drinks.”
Jim:
“We have a big family dinner, then walk around our neighborhood which puts out street luminaries on Christmas Eve. We end the evening with the Christmas classic Diehard.”
Melisa:
“We visit Christmas Card Lane in Rancho Penasquitos (North County San Diego) – we walk and see all the pretty lights in a vastly decorated neighborhood! Also, my family watches National Lampoon’s Christmas Vacation- always a good laugh from Chevy Chase and his wacky family!”
Jenn:
“Every year we make gingerbread houses that my son will leave out for Santa instead of cookies so that Santa can share it with the elves. Each year we try to get creative with them. This year is a football field instead of a house!”
Erica:
“I grew up with all my cousins and we would always spend Christmas Eve together and watch holiday movies. This year, I will spend the night at my cousin’s house, with her three kiddos and start a new tradition of waking up “mom and dad” with Nerf guns that I’ve purchased for all of us. My cousin doesn’t know this yet, so should be fun (for me)!”
Jennifer:
“My family and I typically go to Disneyland every year for Christmas, sadly this year we were not able to do that so we have been finding other ways to sprinkle in Christmas magic. We have seen a fun light display at Candy Cane Lane (North San Diego county) and this year we hiked up to see a beautifully lit Christmas tree that can be seen all throughout our community! And of course, we watch all the Christmas movies to include, ELF, The Grinch, and Mickey’s Once Upon A Christmas to name a few! We also always make Gingerbread Houses and Christmas Cookies for Santa!”
Kimberly:
“My Mom makes our Christmas cookies passed down from my Grandmother who is no longer with us and brings her spirit alive during the Christmas season. Since dating my husband we celebrate the holiday season with a nice dinner out and a show, and take photos every Christmas in front of the Grinch tree in front of the Old Globe theatre! This year celebrating Christmas with my son, who just had his 1st birthday, we are excited to take him to walk around Garrison street in our neighborhood area and show him the light show in Point Loma!”
Claudia:
“We head down to Standlee’s in Chula Vista around Thanksgiving time and stock up on candy making supplies. I like to bake Linzer and snowball cookies, French macarons, and English toffee. My husband is famous for his chocolate pecan turtles made with caramel from scratch (the “right” way lol), peanut butter chocolate covered balls, and his absolutely amazing chocolate fudge. Our friends and family anxiously await the holiday goods from the Parker household! IT warms my heart that he’s passed the candy-making tradition down to Dorian, his mini-me, who now lives in Portland with her husband.”
Michelle:
“Our tradition is to play football on the holiday. The entire family and usually neighbors go outside and play a few games of touch football! It gets us moving and grooving!”
Stephenie:
“Growing up, we always decorated the tree as a family, unwrapping each ornament and the memories tied to it.
There was one ornament that was treasured more than others: the gingerbread cookie sheet. It was a tiny little replica of a baking sheet with six little decorated gingerbread men. Whoever in the family was the first to discover the gingerbread cookie sheet as we decorated the tree was awarded the coveted prize of the first Christmas cookie of the year. No small prize, I assure you; those Christmas cookies were good.”
Howie:
“The holidays have always been a time for the whole family to be together. There is always one night when we drive around searching for the most over-decorated houses, talk about how high their electricity bill must be and how long it will take to disassemble. Holiday movies start with The Wizard of Oz near thanksgiving and culminate with The Grinch (any version), Elf, and sometimes but definitely not every year, It’s a Wonderful Life. Lastly, eating and music-festive foods and listening to rock n roll Christmas songs by Chuck Berry, John Lennon, Tom Petty, The Beach Boys, The Ramones, James Brown’s Funky Soul Christmas Album including ‘Santa Claus go Straight to the Ghetto” and my favorite “Christmas Wrapping” by The Waitresses.”
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November 5, 2023/by Amanda RogersHuman Capital vs. Human Resources: What’s the Difference?
NewsHuman Capital vs. Human Resources: What’s the Difference?
(Hint – It’s not organ harvesting!)
Today, most organizations focus either on:
What if we told you the real magic happens when you bridge the gap between the two? Understanding your human capital while operationalizing human resources is essential to your success in creating a company culture that thrives.
What is Human Capital?
Let’s start by understanding human capital on its own.
Human capital is the measure of skills, knowledge, and experience that your employees possess. These attributes are viewed in terms of their value to your organization.
The idea of human capital, however, takes a less “by the book” approach. The biggest differentiator of human capital is that it is intangible.
It’s a “quality that isn’t (and can’t be) listed on a company’s balance sheet.” Instead, human capital is perceived to increase productivity and thus profitability,” according to Investopedia.
Human capital focuses on the value an employee can bring, and also the future value of employees as an investment the company can make.
Examples of human capital include:
At Culture Works, we love the concept of human capital—as the approach focuses more on the person behind the resume than anything else.
What is Human Resources?
Now, what is Human Resources? Human Resources (HR), a term first coined in the 1960s, is “used to describe both the people who work for a company or organization and the department responsible for managing all matters related to employees.”
At Culture Works, we specialize in fractional HR. When looking to hire an HR team or manager, some of the roles and tasks they’d oversee (and implement into human capital) include:
For any organization, it’s valuable to know when your business needs an HR team.
How Can You Translate Human Resources into Human Capital? (And Ultimately into Human Investment…)
As you look to operationalize your company culture, it’s important to understand each of these aspects to managing your talent.
When your company culture and human resources are operationalized, a few things happen for your employees.
Naturally, employees who are engaged in their work are more efficient, which ultimately, contributes greater value to your business.
How Role Alignment Can Lead to Greater Human Investment
Firstly, what is role alignment? Role alignment prioritizes a values-based recruiting process to attract, acquire, and retain exceptional talent that fits your culture and grows with your company.
Think: An employee might apply for a role with all of the requested qualifications (or maybe they are even overqualified!). This, however, does not automatically mean they are the best fit for the specific role or company.
They might not be “role aligned.”
When you’re recruiting employees, you need to look not only at skills but also at whether or not they are role and value-aligned. Hiring isn’t just about a resume, it’s about the person you’re hiring.
Why is Role Alignment So Important?
Role alignment is one of the key factors at the heart of an operationalized human resource strategy, and it is at the core of bridging the gap between human capital and human resources.
Role alignment breeds great company culture and produces results. Additionally, role-aligned employees stay in their jobs. As the adage goes, happy marriages don’t end in divorce! (In other words, people who aren’t role or culture-aligned aren’t going to stay).
Optimizing an employee’s knowledge, skills, and experience to align them in a role that fits their strengths is essential to their success (and your organization’s).
Your investment in your employees will pay off as your employees become more aligned in their roles.
A Final Word
Successful HR means hiring for people who are role and value-aligned.
At Culture Works, we hire for culture – not for skill. We operationalize culture to ensure that the right people are in the right roles because we know that with proper role alignment, your employees will increase productivity and engagement.
Read on to learn more about role alignment and why it’s the golden ticket to your next key player on the blog.
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