When I sit down with business owners and investors, I often hear the same refrain: "We need to get HR sorted out." What they usually mean is they need someone to handle payroll issues, update the employee handbook, or make sure they're compliant with the latest regulations.
And yes, those things matter. But if that's where your people strategy begins and ends, you're leaving significant value on the table.
Traditional HR operates as a support function. It's reactive, administrative, and focused primarily on risk mitigation. HR makes sure you don't get sued, that benefits are enrolled correctly, and that policies exist (whether anyone reads them or not). It's the cost of doing business, the price of having employees.
Here's the issue: your people are not just a cost to be managed. They are an asset to be leveraged.
Think about how you approach other assets in your business. You don't just maintain your equipment; you optimize it for performance. You don't just track your capital; you deploy it strategically for growth. You measure ROI, assess risk, and make decisions that maximize value.
Why would you treat your most powerful lever for growth any differently?
Human capital takes a fundamentally different approach. It views people through the same strategic lens you use for every other asset on your balance sheet. It asks:
Human capital isn't just about having good people. It's about having the right people, in the right roles, aligned around the right strategy, with the systems and leadership to execute.
If you're preparing for a sale, acquiring a company, or raising capital, this distinction becomes critical. I've seen deals where the buyers paid a premium because the target had a strong leadership team and clear succession plan. I've also seen deals where valuation took a hit because of unresolved people issues: high turnover in key roles, cultural dysfunction, or leadership gaps that would require expensive fixes post-close.
Every existing challenge in your organization will double after an acquisition. If you can't retain key employees, if your leadership bench is thin, if your culture is misaligned, growth will magnify those problems instead of solving them.
Private equity firms understand this intuitively. They know that operational improvements drive value creation, and operational improvements happen through people. The companies that treat human capital as a strategic priority consistently outperform those that view people as an HR checkbox.
Moving from HR to human capital doesn't mean firing your HR team or ignoring compliance. It means elevating the conversation. It means asking different questions:
Instead of: "Are we compliant?"
Ask: "Are we positioned for growth?"
Instead of: "Do we have an org chart?"
Ask: "Do we have the right structure to execute our strategy?"
Instead of: "Can we fill this role?"
Ask: "Do we have a talent pipeline that supports our growth trajectory?"
This shift requires thinking about people the way you think about capital deployment. It requires oversight, strategy, and accountability. It requires treating your leadership team as a competitive advantage and your culture as a measurable driver of performance.
If you're leading a business or evaluating one for investment, here are three questions to pressure-test your people strategy:
People are not a line item. They are the most powerful lever you have for creating value, reducing risk, and positioning your business for what's next.
The companies that win don't just manage HR. They build human capital strategies that align talent, leadership, and culture with their business goals. They treat people as an asset, not an afterthought.
If you're preparing for growth, navigating a transaction, or simply trying to get more out of your organization, the question isn't whether you need HR. The question is whether you're ready to think about people the way you think about every other asset in your business.
Because if you're not, your competitors will.
Mya is the founder of Stone Capital Partners, a human capital advisory firm that helps business owners, investors, and leadership teams unlock value through people strategy. With experience spanning HR consulting, investment banking, and private equity, Mya brings a unique perspective on how human capital drives growth and value creation. Learn more at (Website) or connect with her on LinkedIn.