Why HR Investment is Important?

Human resources (HR) are the most important asset of an organization. An organization's success largely depends on the quality of its talent. In general, the successful performance of an organization depends on the quality of its human resources. Organizations are thinking about leveraging their workforce through human resource management.

Human resources differ from other organizational resources in many ways. Other resources in the organization can be hired, retained, and discarded at any time, but human resources require special treatment. It needs to be hired with care, it's worth the extra effort to maintain, and you need training and development to update and improve your capabilities. Other resources depreciate over time, but as human resources gain more and more experience, they become more beneficial to the organization.

These characteristics make human resources a central element of organizational success. These organizations face various challenges about whether to invest in human capital and how to retain employees. Organizations can spend a lot of money to train and train newly hired employees; The departure of these employees means that the organization will suffer both economic loss and loss of employees.

The goal of human resource development is to give jobs and produce skilled and qualified employees who contribute to an effective and effective achievement to achieve the development and objectives of the organization. The quality of people working in the organization determines how organizational work was or poor. It is true that the experienced and qualified workers of the organization find a more favorable opportunity to be more favorable from the other place outside the organization.

This scenario has created a new challenge for the administration of the organization. Switching to other tasks in a single job in the same organization may affect the organization's performance, but the migration of the organization to others, particularly in a competitive environment in a competitive environment, in other organizations, can be done.

Organizations attract qualified staff to improve performance. Organizations can simply invest in physical capital, such as a machine that is not very interested in remodeling. However, investments in human capital have invested human resources and require a prudent strategy to maintain human resources. Some companies associate human resources investment decisions with productivity and growth over a period of time. This will be a simplified equation for human resources investment decisions:

Human resource investment = Productivity & Growth × Minimum stay with an organization.

Unlike other assets, an organization's human resources are more dynamic and can be easily transferred from one organization to another. They can easily transfer the talents, skills, experience, and skills acquired through training and development from one organization to another. As a result, many organizations today avoid investing directly in their human resources and instead find it productive to attract experienced workers from the labor market at a competitive salary.

Organizations in the highly competitive job market have no incentive to invest in their human resources in the long term because well-trained and experienced workers can easily compete with other organizations. Well-trained and developed human resources can provide an external economy for organizations that receive experienced human resources from the labor market at a competitive salary rate because they can utilize these workers without any investment cost. This means that when employees are rejected by other organizations, organizations that invest in human resources will suffer capital losses.


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