Post-Pandemic Human Capital Initiatives: From The New To The Norm
Covid-19 was a test for many businesses with supply chain disruption and workforce shortages. These had brought a great impact on many aspects of the economy...
As businesses are concerning the importance of human capital solutions for sustainable development in the new normal. What are the necessary elements for a human capital initiative according to our four HR management experts?
“Without strategies, businesses cannot thrive”
According to experts, being prepared with a good human capital strategy helps businesses reduce unwanted burdens. According to Mr. Phạm Phú Ngọc Trai – Founder & Chairman of Global Integration Business Consultants (GIBC), businesses cannot drive without a well-prepared strategy. “Being prepared with a good human capital solution can reduce short-term risks as well as maintain supply chains and workforce during the unexpected factors as the pandemic. It can be seen that many businesses have no idea about investing in an HR strategy. If you think that implementing an HR strategy is only necessary during a crisis then it would take that business a long way to become a sustainable company.”
Sharing the same opinion about the importance of human resource strategy to the sustainable development of business, Mr. Võ Quang Huệ - Vice President of Vietnam Association for Supporting Industries (VASI) commented: “After 5 times starting-up and developing 5 companies in different countries, I realize that human resources are always the key in the business development strategy. Miracles and outstanding outcomes are the results of having the right person that is suitable for company requirements during their development period. HR strategy should be the top priority of all businesses from startups to well-established.”
Shaping the human capital management model
Many businesses are still struggling to build their adaptability to the new normal, despite understanding the importance of HR strategy. In the new normal, taking time to understand business core values, and identify opportunities as well as challenges is quite necessary, according to Mr. Nguyễn Hữu Thiết - Former Human Resources Director of FrieslandCampina Vietnam and Myanmar.
“In order to become the pioneer and catch up with the new trends and create a competitive advantage, businesses must determine whether the skill-set for their core workforce is suitable for business expertise. Moreover, businesses should prepare themselves with a long-term strategy to attract, train and take advantage of the workforce to be ready for the exponential growth of the economy in the next decades.”
According to Mercer's Talent Trends 2022 report, up to 33% of employees say they would forgo a pay raise for additional well-being benefits for themselves or their families. This shows that employee needs have changed.
However, according to Ms. Tiêu Yến Trinh – CEO of Talentnet, healthcare policy is necessary but not enough. “Human capital initiatives model in the new now requires a comprehensive combination of different HR pillars. Not only ensuring health and safety, but they also need the opportunity to learn and develop as well as receive a compensation package that is worthy and suitable to their needs. Today's workforce also demands a meaningful and contributive job and this is where the role of the HR leader becomes more important than ever. Also, that is the reason why Vietnam HR Awards 2022, organized by Talentnet and the Ministry of Labor, Invalids and Social Affairs, has an additional individual category for the best HR leaders.”
HR – Who brings the changes
Talking about HR leaders in the new normal, Mr. Phạm Phú Ngọc Trai also commended: “According to my observations, most HR leaders are well-skilled. The lack of an entrepreneurial mindset is the greatest challenge for HR leaders to become business strategic partners. This is when HR needs to understand their business from a business perspective, not just a perspective of an HR. In order to manage change and provide the CEO with necessary transformations, especially in the new normal, HR also needs to maintain strong leadership. A good HR leader can do business and also handle their HR.”
Also shared by Mr. Colin Blackwell – Chairman of the Human Resources committee of the World Bank’s Vietnam Business: “HR always had the opportunity to be a closer business partner and more strategic. HR now has to take a lead in modernization, persuading their companies what needs to be done to keep up with digital transformation and the new normal. Often senior leaders in a company will understand the way to transform to the new normal, but can HR help them to make this a reality by persuading the rest of the employees? That is what HR needs to take into consideration.”
It can be seen that experts all agree that, before planning out an effective human resource strategy and accompanying the development of the business, first need to transform themselves to become business partners. This is a challenge but also an opportunity for the HR department to put more creativity and innovation to create better human capital initiatives with the adaption of the new normal.
Vietnam HR Awards 2022 - Vietnam's most prestigious HR award is organized to honor the role of HR and celebrate the best and most up-to-date HR practices in the new normal.