Consider your human capital

HR StepsOne of the most persistent mistakes investors make, often with devastating consequences, is the failure to consider their human (labor) capital when constructing their portfolios. In fact, while human capital can dominate a portfolio (especially in the case of younger workers who have limited financial capital), it’s an often-ignored component of an individual’s wealth. The reason for this oversight is that human capital doesn’t appear on any balance sheet. The problem is so pervasive that, in my experience, it’s the rare financial advisor that even considers human capital in their asset allocation recommendations.

What you’re worth

We can define human capital as the ability to earn income. Not only do we need to define the magnitude of one’s human capital, but we also need to consider its variability. Some businesses and professions are highly cyclical, and are thus highly correlated to the economic cycle and the risks of owning stocks. Good examples of professions that might fall into the high correlation category are automobile and construction workers. Other professions have very stable incomes as their ability to generate income has little or no correlation to the economic cycle. Good examples of occupations that

Keeping Your LGBT Employees Safe Overseas

Overseas assignments and international business travel can help employees advance their careers and can help organizations develop high-potentials or fill business needs. But some parts of the world are openly hostile toward the lesbian, gay, bisexual and transgender (LGBT) community. In some countries, LGBT individuals can be subject to arrest, incarceration or even death.

colorfulhands-workplaceCompanies should develop safety precautions specifically for LGBT employees who plan to travel to certain destinations on business, said Mike Kelly, CEO of On Call International, which provides customized travel-risk management plans for workers, their families and the companies they work for.

Kelly discussed with SHRM Online how employers can prepare LGBT employees assigned to travel or relocate abroad.

SHRM Online: How can HR assist LGBT employees planning to travel or relocate abroad?

Kelly: Providing your employees with information about their destinations’ local laws and customs before they leave is the first step to protecting them. While a same-sex relationship or marriage may be lawful in a certain country, the society may be intolerant when those relationships are openly displayed. Additionally, while many countries provide safeguards for members of the LGBT community, there are several that do not. Encourage your employees

Develop Better Leaders Through Coaching by HR

Closeup of a handclasp of business people
Closeup of a handclasp of business people

Organizations are losing talent and struggling to retain employees. The average job tenure in 2014 was 4.6 years vs. 21 years in 1955, according to statistics from the U.S. Bureau of Labor Statistics (BLS). Job tenures can vary widely depending on business and industry; for example, BLS data listed the average job tenure for the leisure and hospitality industry at 2.2 years.

While senior leadership tenure tends to be higher (approximately nine years for CEOs, according to recent statistics), job changes at the most senior level hit record levels in 2014. With executive leadership turning over more frequently, human resource professionals are needed now more than ever to take charge of their organizations’ leadership development programs.

Selling Leadership Development
If you are like most HR professionals, you face a giant hurdle: you must first convince your company executives that leadership coaching is an urgent priority and that you and your team should take charge of it. The following selling points can help you gain approval:

  • Leadership development can solve organizational problems. Present leadership coaching as a strategic investment of

HR ‘New Frontier’ for Data-Driven Business Strategies

Top executives are relying more heavily on HR leaders for innovative, data-grounded business strategies, according to a recent CareerBuilder survey of U.S. CEOs.

“HR is the new frontier for data science applications in business,” said Matt Ferguson, CareerBuilder CEO and co-author of The Talent Equation: Big Data Lessons for Navigating the Skills Gap and Building a Competitive Workforce (McGraw-Hill Education, 2013).

“CEOs are looking for HR to be just as data-savvy and digitally savvy as other areas of the company and take quick, measurable actions that move the business toward its goals,” Ferguson said in a news release.

The CareerBuilder findings, released July 2015, are from an April 2015 survey of 88 executives at companies nationwide with revenue of at least $50 million. Nearly two-thirds said that post-recession, HR’s opinions carry greater weight with senior management.

Driving this change, the survey found, is increased competition for talent, a shrinking labor pool and a demand for higher salaries.

Need for Better Recruitment

More than half of the CEOs surveyed said their organizations have not been able to reach their full potential because they can’t find enough qualified job candidates. Nearly half said inefficient recruiting has cost their companies money.

The top three recruitment challenges, they said, were

Servant Leadership Style Is Best for Bosses

Bosses who are more worried about how they can help their employees rather than how their staff can help them end up seeing better results, new research finds.

When managers put their employees’ needs over their own, businesses gain improved customer happiness, increased job performance from staff members and lower turnover, according to a study recently published in the Academy of Management Journal.

Bosses who create a culture of trust, caring, cooperation, fairness and empathy, have employees who feel more valued, which prompts them to give more back to their employer and customers, said Sandy Wayne, one of the study’s authors and a professor of management at the University of Illinois Chicago.

Wayne said bosses fail to get the most out of their workers when they take on a style of “do this, do that.”

“A servant leader looks and sounds a lot more like, ‘Is there anything I can do to help you?’ or ‘Let me help you …’ or ‘What do you need to …?'” Wayne said in a statement. “This approach helps employees reach their full potential.” [10 Leadership Tips for Young Entrepreneurs ]

The admiration employees have for supervisors who have this type of leadership style results in more