Investing in Your Company’s Human Capital: Strategies to Avoid Spending Too Little—or Too Much

Chapter 1. Let Others Do It

Some executives prefer to take a passive role when investing in employees, attempting to minimize or avoid the investment altogether. While highly dysfunctional, this approach has proven effective for some organizations, depending on their strategic focus. This chapter explores the strategy of letting others do the investing, the forces behind this strategy, and the consequences—both positive and negative—of implementing it.

The Basic Strategy

The strategy is simple—let other organizations provide the investment for human capital. The motivating forces behind this strategy are grounded in cost management—the organization is either looking to cut costs or to avoid costs related to employees. This focus on cost is often ...