In today’s rapidly evolving digital landscape, businesses continue to heavily rely on human capital as their foundational resource.
Given that companies are the driving force behind wealth creation, it is paramount to comprehend the pivotal challenges that govern their management.
Human resources, being at the forefront, must undergo continuous transformation to align with the ever-evolving dynamics of the corporate world.
This adaptability prompts HR departments to exhibit empathy in their approach to managing human capital and fostering loyalty within the company. This approach encompasses the implementation of innovative work policies, such as well-being surveys, compressed workweeks, and remote work arrangements.
This stands in sharp contrast to Elon Musk’s approach after his acquisition of Twitter, where he initiated a workforce reduction of half the social media company’s employees, terminated remote work policies, and imposed longer working hours on the remaining staff. Despite Musk’s impressive track record as an entrepreneur, this move has raised concerns among HR management experts, suggesting that even a successful figure like Super Elon may have made a misstep on this occasion.
Melvin Smith, an organizational behavior professor at the Weatherhead School of Management at Case Western Reserve University, suggests that employees might reluctantly adapt to the more demanding work environment but lack a sense of long-term commitment and genuine engagement. They may be biding their time, awaiting better opportunities elsewhere.
Furthermore, Qiaojing Ella Zheng, co-managing partner at employment law firm Sanford Heisler Sharp, points out that requiring employees to work longer hours without compensation and without considering individual circumstances could leave a company vulnerable to disability discrimination claims.
Clearly, the new CEO of Twitter and founder of SpaceX may not have fully grasped the notion that human capital is the only form of capital that takes years to build but can be eroded in a matter of minutes.
eBooster.ch is a consulting agency with proven records of global innovation projects across several international industries in the fields of 1. Consulting 2. Academy 3. HR Talent
