A research perspective on the vulnerabilities of human capital strategies in the New World Order

The value of human capital, a unique appreciating asset, goes beyond conventional resource definitions. It embodies the collective knowledge stock and diverse cognitive abilities essential for navigating the complexities and unpredictability of the current era. 

As traditional engagement methods face mounting risks, there is a beacon of hope. Business leaders have the opportunity to pioneer innovative approaches, establishing result-oriented creative value streams. 

These efforts are pivotal in fostering superior human experiences and cultivating high-reliability organizations. Our research argues that key roles in organisations need to collaborate to create value across the ecosystem.

The evolving global landscape, now referred to as the New World Order, is not just a buzzword, but a significant shift that demands our immediate attention. It is distinguished by pronounced volatility, uncertainty, complexity, and ambiguity, leading to an escalating strain on global value and supply chains. Unforeseen outlier events are exerting an unprecedented influence on the macro-environment, while the micro-environment has become intricately intertwined with systemic intricacies. 

Consequently, the business environment is rapidly evolving, manifesting heightened volatility. Managerial decision-making is increasingly devoid of linear outcomes. We inhabit a realm of non-linear complexities necessitating exceptional human capital to effectively interface with the business ecosystem, thereby fostering superior success. 

In this context, the role of business leaders is crucial in shaping and adapting to these changes. Facilitating adaptive performance is the new mantra for cultivating business success.

Our research underscores the need to transform job specifications and descriptions into work designs. This new approach offers a distinctive employee value proposition that ensures a coherent alignment between individuals' inherent capabilities and their roles' objectives. 

Contrary to conventional belief, our research shows that individuals' capabilities and cognitive abilities often diverge from the actual job requirements. Traditional perspectives continue to shape the perception of roles, contributing to this incongruity. This mismatch leads to dissatisfaction in the workplace, prompting organisations to engage in employee engagement activities that have produced precise results in the past. 

In this new era, talent is seeking roles where they can make meaningful contributions instead of purely transactional roles.

It is essential to undertake an inquiry into the reasons why conventional employee engagement initiatives fail to yield the intended outcomes. Our research indicates a significant shift in the expectations of employers and employees. While shareholders are primarily concerned with realising favourable returns on capital, employees are increasingly seeking roles that are meaningful and congruent with their personal interests and productivity. 

With the ongoing evolution of the business landscape, social norms and expectations are also evolving, presenting exceptional opportunities for innovation in the global business arena. Our research indicates a mounting expectation among employees to engage in collaborative, cross-functional projects. A more in-depth exploration of this expectation reveals a growing willingness to assume a pivotal role in organisational success, which can contribute to their sense of purpose and identity.

The C-Suite needs to take note of this often-unstated expectation.

The imperative for the C-Suite lies in transitioning from the conventional focus on employee satisfaction and engagement to embracing the concept of employee value proposition (EVP). 

While attaining employee satisfaction is grounded in tangible outcomes, engagement endeavours to establish a deeper and more profound connection, fostering enthusiasm and dedication. The Employee Value Proposition allows employees to play a pivotal role in value creation, leveraging their innate creative and cognitive faculties to engender mutual avenues for development and learning.

A critical mandate for the C-Suite is to conceive distinctive organisational EVP models wherein all key stakeholders are integral to driving organisational triumph. This prototype should encompass tangible and intangible benefits for individuals within the value stream, facilitating their realisation, fostering a sense of organisational belonging, and affording opportunities for cross-functional experimentation to nurture tailored learning and self-evolution.

The employee value proposition thus stands as the paramount determinant of human capital triumph in the contemporary business landscape, with the singular impediment being the toxicity pervasive within the organisational culture.