Human Capital:Driving the Value — in conversation with Dia Nichols
Typically, the term “capital “refers to a business’s monetary assets. But human capital is a different yet equally important kind of wealth, one that requires a deep investment in developing, mentoring, and supporting the work team. Why is a “people investment” so important in driving business growth?
We posed the question to Dia Nichols, a business strategist and solutions-driven inclusive leader who as a health care executive is relentlessly focused on the value of human capital.
Dia, if there is one industry where the value of human capital has always been at the forefront, it’s health care. Explain to us why that is so and how that focus can be applied to other industries, where human capital may be seen as important but not as essential.
The health care industry is in the business of caring for people, often in their most vulnerable moments. We understand the importance of having strong, people-focused employees at that ‘sharp end’ of our work, where patient lives are often hanging in the balance. It’s essential that we ensure our team is well trained for those moments and can calmy and confidently navigate any complications that arise.
The return on investment to organizations who see the value of their human capital applies to any industry. All have the imperative to take care of their team. That means grooming them for success at the next level of performance. It’s an investment that pays off in every dimension, from high-level productivity to improved service quality, reduced employee turnover to expanded market share and better financial performance.
At our organization, as we look at our employee engagement scores, we know investing in our employees is working. Most recently, our scores jumped 10 percentage points.
We tie that increase to the investment we’re making in our people — to “grow” them and show them they’re valued not only for their contribution today but also for their potential to be part of the future of our organization.
How do you drive the value of human capital throughout the organization?
A people-centered approach needs to start with the board and work its way down through the senior team and to the grassroots level. A key gauge of success is employee retention. If turnover is above the industry standard at your organization, look into strategies that can improve your retention levels. Board members should drill down into the detail of what those numbers mean. Is a larger investment in recruiting needed? What strategies will improve the employee experience once new hires are on board? How will you grow team members to the next step in career development and motivate them to stay with your organization? How will you build a nurturing work culture? The entire leadership team needs to create an overarching “people plan,” own it, and continuously measure its effectiveness.
Thank you, Dia. We are grateful for your guidance.
Dia Nichols is a health care executive, well-rounded business strategist, and adept manager of people. Skilled at turning crises into opportunities, he has over two decades of experience in providing fiscal, strategic, and operational leadership in challenging situations and complex environments. His seasoned ability to adapt and pivot, coupled with a deep understanding of market and industry trends, has enabled him to guide businesses and boards to new horizons.
