Phl economic fate rests on human capital

CEBU, Philippines - Among other vital economic factors, human capital is considered a core and a measure of a country's competitiveness.

Francisco Duque III, chairman of the Civil Service Commission, said it is a must for the government to look at the economic potential of human resources -- its people -- to ensure a performance-based governance system.

The key of the Philippines' future and sustained economic growth lies on the skills and talents of its people.

During the recent People Management Association of the Philippines conference here in Cebu last week, Duque particularly cited the public sector has been trying to make changes in the area of government services.

‘Gov’t services must improved’

He stressed red tape and fixing in government transactions must be stopped now as these are hampering the public sector's transformation efforts.

"Government services are the drivers of citizens' satisfaction," the CSC official noted.

He explained the strategic human resource management and organization development in government offices are keys to harness the economic potential of the labor force.

Upscale the human capital

In addition, Nina Datu-Aguas, the CEO and president of Philippine Bank of Communications, pointed out an empowered human capital is the key -- and not the end state -- to drive and achieve economic development.

"Better education and social services lead to equipping ourselves to thrive in an increasingly competitive environment," she explained. "We need to upscale our people and the collective empowerment of Filipinos."

Elizabeth Nasol, vice president of Energy Development Corporation's HR Management Sector, also stressed HR leaders should be able to influence the workforce to be more efficient.

Nasol said: "It is important that we provide them an environment that will allow them to become the best that they can be."

She added the education system should likewise be reinforced to make the workforce become employable in the future.

'Workforce should be deemed as investment'

In a recent interview, Professor Federico Macaranas of Asian Institute of Management pointed out the need to change the people’s perception of training and workforce development.

While several companies consider enhancing workers’ potential as additional cost, Economics Specialist Macaranas emphasized the workforce must be considered as investment.

“Regularly update the skills and knowledge of employee to maintain productivity. (There is) a need for knowledge management,” he said, adding company managers must provide an enabling environment conducive to creativity and innovation.

He added building on the foundations imply that effective managers make high-performing employees.

The Filipino professor also cited the need for the government to solve the brain drain problem in the country as the Asean economic cooperation will take place next year.

He said: “There are a lot of factors to the brain drain phenomenon, but clearly, low and stagnant wages is an issue.”

If the Philippines want its middle managers to stay, Macaranas said they must be paid according to their high marginal productivity.  (FREEMAN)