How to Succeed in the Hot Human Capital Space

Human capital is heating up. According to Debbie McGrath and HR.com, the demand for labor is increasing and investors are protecting and growing their current investments, infusing HR vendors with millions of dollars of capital. We’ve also seen more human capital acquisitions and mergers in the past 12 months than we’ve seen in the past four years.

But how does a company survive (much less succeed) in such an ever-changing and confusing industry such as human capital?

We found some great ideas in GE's CEO Jeffrey Immelt's 2003 annual letter to the shareholders where he talks about what companies must do to succeed in todays complex business environment. Although many HR vendors are not publicly traded companies and do not necessarily compete globally, their customer's (and in many cases, their competition) do and every HR vendor can learn from Mr. Immelt's advice. An overview of his thoughts includes:

"Future economic growth will be uneven. To succeed, companies must navigate major global trends that will have significant impact on valuation. These include:
The best growth strategies take companies to places where only a few can follow. We are another year along with our five-initiative strategy to create high-margin, capital-efficient growth:
The result of these initiatives will be a company that can achieve organic growth at twice the GDP with high margins and returns."

If you're interested, you should read the entire GE 2003 annual letter to the shareholders.

You should also be capitalizing on the new growth in human capital by aggressively promoting your products and services today. Now is the time to evangelize your company to the HR world.