HUMAN CAPITAL BASED QHSE, a Smart Business and Investment Strategy

23 April 2019

In most companies, attention to human capital or human capital as one of the main production factors of the company is still often dominated by other production factors such as capital, technology and money. Many company leaders do not realize that the actual profits derived by the company come from human capital. This is because company activities are only seen from a business perspective, not seeing the company as a unit of knowledge and skills, or a set of business assets that can be used as an investment for the future. Human Capital, must support the company's vision and mission as well as align with the business strategy that has been prepared previously. In addition, a good Human Capital strategy must also consider the strategies of other functions within the company. This alignment makes Human Capital's strategic contribution felt in the execution of all the strategies set by the company. Thus the company can increase its competitiveness which is sustainable through its human resource wealth.

Human capital is a person's knowledge, skills and abilities that can be used to produce professional services. Human capital reflects intellectual capital that is collective in a company to produce the best solution based on knowledge held by individuals (human resources), even though human capital is not tangible, but is one of the main assets or components of intellectual capital (intangible assets) that must owned by the company.

In the face of the 4.0 industrial revolution it is not enough just to increase the competence of the workforce, but it must also be followed by an increase in understanding of occupational safety and health (safety). Another development that needs to be observed by all parties is the requirement by service users, especially developed countries on the requirements of goods or services (quality), among others, must be of good quality, safe to use, environmentally friendly, and meet certain international standards including the Quality Management System and HSE as well as other standards. This condition is a challenge as well as an opportunity to achieve success in free trade and increase the competitiveness of companies.

The QHSE Department instills a culture so that the Quality & HSE System is not considered a burden, but as an asset and investment for the company now and in the future. The company's competitiveness is very important. Therefore the QHSE must be an integral part of efforts to improve the competitiveness of companies. To build a culture of QHSE as a strong company asset and investment, the role of good, efficient and professional human capital is needed in facing various changes in the business environment both internally and externally.

                                       Management element of human capital

The management of QHSE human capital takes into account the important elements that can have an impact on business performance, as an asset and at the same time as an investment in improving the competitiveness of the company as a whole, including through:

1. Recruitment and Placement

The recruitment of officers and QHSE officers is carried out by the company from time to time in operational activities. The recruitment program is conducted to find the right personnel and have talents who are able to fill various levels of organizational positions. The success of the company in the future depends on the recruitment process. It is not easy to choose the right person in the right place. Therefore, both direct and indirect testing and screening processes need to be carried out gradually.

2. Training and Development

Training and development is important to anticipate issues related to the fulfillment of the Quality & HSE System, changes in laws and regulations and environmental management requirements that occur continuously. Training and development are planned by the QHSE Department internally and involve external parties to improve workers' knowledge, skills and abilities. Training is more focused on increasing the ability to do specific work at this time, and development is more emphasized on increasing knowledge to do work in the future, but both have the same goal, namely to increase knowledge, skills and abilities.

3. Performance Management

To improve company performance optimally, the role and commitment of management is needed in the activities of monitoring, reviewing, developing and rewarding employee performance and continuous coaching.

Effective QHSE performance management is expected to be able to:
  • Standardization of the implementation of the Quality Management System & HSE in work units within the organization,
    • Identify and document various performance barriers and problems,
        Become a basis in decision making,
        Minimizes errors and eliminates repetitive errors,
        Efforts to prevent accidents and minimize significant risks,
        Develop cooperation between superiors and subordinates,
        Being a means of delivering feedback to subordinates,

    4. Career Development

    The same career development opportunities among employees are carried out formally and sustainably with a focus on improving the managerial skills of a worker. There are two mechanisms for understanding career development in a company:
    • Management: This process is an organized  and planned formal effort to achieve a balance between individual career desires with current and future requirements of the company's workforce.
    • Planning: Planning someone to achieve his career goals, this is an effort that is carried out by someone aware of the abilities and skills they have on various opportunities and obstacles faced.

    5. and Awards

    Compensation and awards illustrate how the company provides rewards to employees. The expected target is to encourage the competitiveness of the company, harmonize the work goals of individuals or groups with company goals, and strengthen positive behavior towards customers / stakeholders.

    6. and Work Environment

    Company management is required to improve the culture or work environment within the company as well as the company's ability to manage change. Effective corporate culture can create increased productivity, increase ownership of employees, and ultimately increase company profits.

    It is time for company leaders to realize that the profits derived by the company actually come from human capital, and do not see all company activities from a business perspective, but rather view their company as a business simply not seeing the company as a unit of knowledge and skills, or a set of business assets can be used as an investment for the future.

    Paradima that must be built at this time along with the application of Human Capital is "QHSE is value, not only priority". If someone has the values ​​of improving the quality of work and results of work and work safety in him, then there will be no more reasons for not complying with the procedure, using safety equipment properly and always preventing the existence of environmental pollution. "Together we can do better ... "