Top HC Awards 2024: Align Human Capital With Business Strategy

JAKARTA - A number of leading companies from various industrial sectors received the Top Human Capital Awards 2024, at the Raffles Hotel Jakarta, Wednesday, October 30 evening, at a gala dinner.

Held TopBusiness Magazine in collaboration with a number of institutions, the event was attended by 400 people from various circles. Such as representatives of the award-winning companies, consultants/business observers, the mass media, and others.

The institutions include LKN (Nawacita Study Institute); several associations related to the human capital sector; academics from several campuses such as the University of Indonesia, Padjadjaran University Bandung, Pertamina University; business consultants and GCG (good corporate governance) such as Sinergi Daya Prima, SGL Management, Dwika Consulting, Melani K. Harriman and Associate, Business Performance Solutions.

The names of the award recipient companies are PT Shenhua Guohua Pembangkitan Jawa Bali, PT Tangkas Cipta Optimal (Taco Group), PT Pertamina Patra Niaga, PT Pelayaran Bahterat Adiguna, PT PLN Energi Primary Indonesia, PT Aneka Tambang, Tbk.

Then, there are the names of PT Asian Bulk Logistics, PT Bukit Asam Tbk, PT PLN Nusa Daya, PT Pupuk Iskandar Muda, Great Giant Foods, PT Astana Kinaya Mitratama (Astana Group), PT Prima Armada Raya, Trisula Corporation, PT Hakaaston, PT Hutama Karya (Persero), PT Bank Tabungan Negara (Persero) Tbk, PT Bank Syariah Indonesia Tbk and several other well-known companies.

Head of the 2024 Top Human Capital Awards Organizers, M. Lutfi Handayani, said the theme of the award was: Aligning The Organization to Business Growth Strategy.

"This means, through this Top Human Capital Awards activity, we want to continue to encourage organizational development to be in harmony and be able to support the company's sustainable business growth," said the Chief Editor of TopBusiness Magazine.

The process of assessing and deepening the success of the HCMS (Human Capital Management System) is carried out through several stages, and culminates in judging interviews.

The number of participants in the Top Human Capital Awards 2024, which participated in all stages of a complete assessment, was 103 companies.

"This number has doubled compared to 2023," said Lutfi.

Furthermore, Lutfi said, to increase the benefits of participating companies, the organizing committee for the Diagnostic Organization (OD) Survey, which is filled by employees of participating companies. It uses the Predixa Application platform based on artificial intelligence (AI).

"Participants will get a report on the results of this survey. And hopefully it can be input, to what extent is the level of alignment of participating company organizations in supporting business strategies. Reports on the results of this survey are only given to participating companies whose number of respondents meets the specified amount," said Lutfi.

Lutfi also said that in addition to awarding awards, the organizers prioritized learning aspects in this event.

"God willing, this will be the difference between the human capital award for the TopBusiness Magazine with similar awards," he said.

In a judging interview, said Lutfi, the Jury provided suggestions and input/recommendations to participants. The jury also has the opportunity to explore the management of HCMS from many companies, so that they can compare the advantages and advantages of each company.

"Hopefully it can be an inspiration for the development of HCMS companies operating in Indonesia," said Lutfi.

As the main speaker, the Minister of Protection for Indonesian Migrant Workers, Abdul Kadir Karding, conveyed a number of messages regarding labor in Indonesia. Minister Abdul Kadir said it was necessary for companies in Indonesia to continue to increase employee skills.

The current company needs to compete well and continue to improve the skills and competence of its employees, he emphasized.

In addition, the minister mentioned the need for a company and its employees to be more solid.

"Then, loyalty is very important. So, healthy companies are those who have [employees] loyalty and solidity," he explained.

Furthermore, Minister Abdul Kadir discussed the need to prevent the exploitation of Indonesian migrant workers.

The foreign exchange value for migrant workers can reach IDR 227 trillion [per year]. However, the majority who go abroad come from non-procedure or illegal routes," he said.

The workers, he said, lacked many work skills and everyday language skills in their destination countries. So that they become the target of exploitation.

"Well, if we can increase the skills of the Naker, then 50 percent of the exploitation problem can be lost. This is what is very important to the President of the Republic of Indonesia Prabowo Subianto," said the minister.

The chairman of the 2024 Top Human Capital Awards Jury, Budi W. Soetjipto, Phd., said that the challenges of changing business so far demand the management of an agile human capital management system and parallel to a change in business strategy.

The increasing digitization of business processes must be balanced with human capital readiness that is adaptive to the development of digital systems and technology.

Therefore, we can conclude that business transformation has changed business strategies and processes, since the era of digitalization and global economic conditions that are full of challenges, demands the transformation of HCMS. This is so that the company's business can continue to grow sustainably," he said.

In accordance with the criteria for the 2024 Top Human Capital Awards assessment, the alignment of HCMS with business strategies so that the company can continue to continue, is one of the important factors for assessment.

The jury appreciates and awards the President Director with the category The Most Committed Top Leader on Human Capital 2024, as well as the category The High Performing Human Capital Director 2024 for the Board of Commissioners. And, there is a category The High Performing Human Capital Manager 2024 for Corporate Secretary, which is considered to have played a major role and contributed to the improvement in the implementation of HCMS in his company.

From the assessment process and the 2024 Top Human Capital Awards judging interview, there were a number of interesting findings. Budi detailed these findings.

First, in general, the violence between HCMS and the business strategy of participating companies is quite high. But what needs to be paid more attention to is the importance of HCMS' strategy alignment size/indicator and the company's business strategy.

Second, the use of digital technology for the development of HCMS applications or systems is increasing. Some companies have developed in an integrated manner with business processes, but others are still developing HCMS applications that are separate from business systems.

Third, the use of power. The use of power transfer, of course, depends on the choice of business strategy. What needs to be paid more attention to is that the transfer of power policy must of course continue to pay attention to aspects of labor regulations and aspects of human development.

Fourth, related to the leader who is the key to HCMS' success. In order for HCMS to become a culture in the company, a leader who has a high role and commitment to implement human capital policies is needed. The aspect of Tone at the Top must be implemented. The president director, including the board of directors, must be able to be an example in terms of implementation and HCMS. In addition, increasing human capital competence, at all levels of management, needs to be improved so that the values and culture of the company, can be developed as superior behavior and culture in the company.

Fifth, the high turnover of Generation Z workers. As we all know, Generation Z (or Gen Z) on average survives in one job for two years and three months. Most Gen Z only stays in the workplace for one or two years. In fact, 23 percent of Gen Z came out before the work contract ended.

"Therefore, we must continue to innovate and create a comfortable and challenging work environment, so that Generation Z is more comfortable and has room to be creative," he said.

Sixth, to support the success of innovation, there are several participating companies that have formed the Lean Project Team, which is a special unit that contains young people, to develop and carry out new business/service innovations, or to deal with market and technology disruptions, which require high agility. That is especially for business development projects that have a big impact in the future.