Human Capital Management: The Role of Employee Engagement
In this era of change need of managing human resources gaining importance day by day. Today organisations treat its human resource like capital and pay attention of its management like other funds. There is nothing wrong to treat human capital on priority because as money is important for starting a business similarly human capital i.e. knowledge, skills, creativity, experience and commitment are essential for growth and survival of the business.
The paper discussed about the concept of human capital and need of its management. The study also examined different drivers of human capital management and out of all the drivers’ employee engagement influences human capital most. The paper also highlighted what benefits organisations have with engaged employees and ways how employee engagement helps to manage human capital for achieving organisational purposes.
Keywords: Human Capital, KSAO (knowledge, skills, abilities and other characteristics), Human Capital management(HCM), Employee engagement, Discretionary efforts.