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The Sieve model or Human Capital model? What is more profitable for you?

Looking for qualified employees and keeping them in the company to become a permanent part of the it, is a big challenge in today’s realities of the labor market. Due to the large shortage of employees in many industries, it is worth betting on recruitment models other than the current ones. On the other hand, every company needs such employees who will be dedicated to their work and willing to develop their competences. Until recently, we often encountered two models in human resource management on the market. Today, we are slowly moving away from one of them in favor of a modern approach, where the employee is a valuable resource of a well-functioning company.

Sieve model – why is it worth giving it up?

The basis of this model is the selection of employees. It is on its basis, that the best employees are selected. Proponents of this model argue that employees are not willing to change and have no desire to implement changes. Based on a selection, not only new team are selected, but also old practitioners, who for example have proved to be less efficient, are removed.

It is a model that on the surface may seem effective, but in fact, it does not correspond to the current times and expectations towards business ethics and the labor market itself. Basing your company on the sieve model, your employees are deprived of a sense of security and stability, which leads to a lack of commitment and internal conflicts. Which might lead to a lack of loyalty.

Invest in the Human Capital model

The second model is the Human Capital model, which assumes a completely different approach than the sieve model. The approach towards the employee is more holistic and human, it assumes the possibility of changing the employee attitude for the better, when that person is properly stimulated and motivated. When using this model, it is profitable to invest in deepening of the skills of employees, sending them to trainings, conferences and providing additional benefits that strengthen loyalty to the company.

With this model, however, it is important to adjust the company’s strategy and align the interests of employees with the interest of the entrepreneurs. Hire the right people who will coordinate the activities of the employees, but also choose the best development paths for individual units.

With a dynamically changing labor market, where it is increasingly difficult to find qualified employees and industry experts, betting on the Human Capital model is the future. Social life generates many changes in the approach towards work culture, as well as the very importance of work in human life. The Sieve model is not encouraging employees to take a job in the company practicing it. Above all, the employees value security and good employment conditions at the economic but also organizational level. That is why, when recruiting, it is so important to focus primarily on a candidate, which often may not give spectacular results right away, but in the long run, it is the only option that pays off if you care about running an ethical and modern business.