Human Capital Strategy in Indonesia : Framework Approach

Teguh Yoga Raksa (2008)

In the term of people management , human capital department has huge responsibility to maintain people work and contribute to the company or organization. Talent is “ Key Word” related with organization sustainability. Most of organization need people to operate business instead of the company itself operated automatically by machines without people involvement.

If we take a look Indonesia as benchmark for workforce model , we will find that Indonesia as a good model for implementing best practice human capital which is done by multinational company in USA or Europe. Indonesia is potential market for HR consultant , IT Consultant or Technology consultant to develop our emerging market.

Survey conducted by Hay Group, showed that human capital strategy in Indonesia consist of 4 critical issues that most of company Indonesia can be implemented :

Retention – The tight market for experienced technical and professional workers will require companies to focus in retention

Succession Plan – Companies need to prepare plans for inevitable loss of some key talent

Training – Although university graduated increasing , the demand for skilled workers will require companies to provide training for new hires to meet demand

Rewards – companies must broaden their reward strategy to include non- financial elements

4 element of human capital strategy correlated with how to retain and motivate employees, in the other word we could call “ employee engagement program “.

If we concern about engagement employee, its difficult to describe which parameter that employee feel happy to keep working and staying at the company , from Hay Survey in 2007, showed that employees will feel engage because of job satisfaction , talent management , innovation , direction and supervision.

Conclusion

By managing employees expectation and maintaining employees to contribute to the company. We could design human capital strategy as integrated and comprehensive program which is aligned with organization wide strategy.