What happens when we embark on an employment relationship? I believe that there is an exchange of value. People are an organisation’s most important asset – it’s human capital. This human capital can be measured in a particular currency that I will call People Capability (PC).
PC is a combination of the knowledge, networks, skills and competencies of employees. The employee provides physical energy and intellectual capacity in exchange for some cedis (or dollars) and other VALUE. It is this other value that I intend to briefly discuss in this quarter.
What do employees get from the employment relationship? What do they value the most? Is there a correlation between People Capability and CEDIS? Is it about the paycheck alone? This question requires a certain amount of workplace analysis by human resource professionals and managers. Trust me, the ability to answer that question correctly and put strategies in place that address employee satisfaction will certainly raise the People Capability value and enhance productivity and retention. Do you get the exchange rate connection? If you increase your People Capability, you will increase your GHC. Simple!
The Law on PC
The Law recognises that the value of the employment relationship is not necessarily about the amount of money an employer pays an employee to do a job, and focuses more on employees acquiring enhanced responsibilities, capabilities and skills in a fair and equitable workplace than on financial reward. The Constitution 1992,Labour Act 2003, National Vocational Training Act (1970), National Vocational Training Regulations, and The Education Act (1961) all enjoin organisations to continuously capacity build and train their employees. They promote People Capability.
These laws emphasize the point that the financial value that an organisation gives in return for employee’s human capital must not only be in the form of salaries, benefits and bonuses. Most employees look for something more than cash. Embedding principles of imparting value to our people-assets conditions their motivation, commitment and loyalty, and hence their contribution to enhancing the value and
the worth of other stakeholders. The Law will always step in, just as in any other contract, to ensure that there is an
equitable exchange of value.
How do you rate your PC?
Employees, “How do you value yourself as an employee?” What price would you put on your value to your organisation? How much is your PC worth? What’s your exchange rate? Do you quantify yourself by salary or competence? If your PC rate is low, how will you raise it to increase your GHC and other value? Figure it out and discuss this with your manager at your next performance appraisal. Business owners, “How do you value your employees?” How do you enhance PC and what do you give for it? Is it on the basis of what an employee individually contributes to your organisation, how productive they are, or their pedigree – so-and-so is related to the big honcho who owns this or that? What is your policy on PC? Do you have one? If you don’t have one, get one.
The bottom line is about creating value for your organisation by delivering value to its external stakeholders who are the organisation’s customers, clients and service users. The Law enjoins us to do so, however it makes good business sense to build and enhance the capability of the organisation’s most valuable asset – its people. I cannot end without an equation. Consider this simple one;“NO PC = NO GHC”.
Written By: Cilinnie Ngo-Pondi