Financialisation of Human Capital: The Challenges and Opportunities Human Resource Departments Face
Nowadays more and more enterprises begin to use total rewards strategy to do the employee motivation. The traditional compensation only meet certain common requirements and seldom consider the special and private requirements.
But the total rewards strategy emphasizes that employers should be more open minded and try the best to meet all the requirements of employees. In general, total rewards strategy is suitable for the needs from different level and it could encourage people’s potential from all aspects.
Enterprises should not only to provide material incentives to employees but also provide the opportunities for work life balance and career development. Meanwhile organizations should meet the growing needs of wealth increment. So the human capital financialization become inevitable.
Human Capital financial solution includes the employee wage cash management, bonuses deferred payment plan and various supplementary pension management, personal wealth management, the implementation of equity incentive program. HR managers should pay more attention to the compliance, the welfare combination design, long-term and stable investment returns and the guard against on the future potential risks.
For reference:
1. What’s the challenges of human capital financialization on HR department? What’s the principle for the allocation scheme for human capital expenditure?
2. Human capital expenditure is the cost which was produced by the acquisition and development and reset of human resources. This cost is the monetary expression of human capital investment and the amount of value of human capital investment. How to design the proportion of human capital expenditure on total expenditure? How to adjust the structure of the cost?
3. Whether your company would increase the welfare spending in the future? Is it mainly for guarantee or investment?
4. Does your company have the pension investment plan? Why do you make such plan? How to introduce enterprise annuity and human capital financialization solution for HR department?
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