28 March 2014

Our Employees- " The Most Valuable Intangible Assets "


Our Employees- " The Most Valuable Intangible Assets "

1st April - Corporate India is heading to yet another Financial Year beginning! Companies across India would have finished their stock taking (measuring the quantities of stock held) of raw materials, semi-finished goods, finished goods, capital goods etc. on 31st March. This stock will find a place in the last years Financial Statement as Closing Stock and current year Financial Statement as Opening Stock.

While starting the journey to another financial year, let me raise an interesting question to the 
Corporate world- along with the stock taking of our physical goods, don't you feel its important to take the stock of skills level of the most valuable asset in our Organization - the Human Asset? 
It goes with out saying human asset is the key intangible assetfor any organization. In today's dynamic world, it is the human assets and not the fixed or movable assets that differentiate any organization from its competitors! If so,during last financial year ending, how many of us have taken the stock of skills level of our human assets?
" Our ASSETS walk out of the door each evening. We have to make sure that they come back the next morning," saysNarayana Murthy, Non-Executive Chairman and Chief Mentor ofInfosys. In today’s knowledge economy, the single most important and powerful factor that differentiates one organization from another is the Human Resources (HR) or Human Assets.

While humans can be physically replaced, the skill-sets and knowledge of a person leaving an organization cannot be exactly replaced by the successor. It is widely held among 
business decision-makers that the skill of employees account for 85% of a company's assets. Employee skills determine the speed and success of organizations.

Most of our employees are hired to do specific functions based on current need. As the strategic direction of our organization changes, these employees (human assets) yield less and less. In other cases, employees hired for a specific function never have their full capabilities assessed or explored. Further, there is a general inability to quantify the capacity of human resources. Consequently, the organization cannot effectively determine when it has reached its affordable human asset capacity level.
It is also important for us to understand that the skill sets of our employees helped us to reach certain targets during the last financial year. It is obvious that we will set an ambitious target during this financial year probably with the same set of employees. Remember, the skills level of our people enabled us to reach here but is it enough to take us to the next level? Should we take the stock levels of skill sets they possess and address the gap if any? I believe performing a skill gap analysis will help organization to understand gaps in performance and possible areas for training and development.


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