What is Human Capital and What Does It Mean for Your Business?
Updated: Dec 9, 2021
In short, human capital is the collective skills, knowledge, and intangible assets of a group. In the case of the professional workplace, it is the skills, knowledge, and assets of a workforce. Employers are enthralled by human capital and obsessed with creating it because it provides value to businesses in ways that other assets cannot.
Human capital is, first and foremost, essential to business because companies are built and run by people. Starting with employees on the front lines, people have the ability to make or break a company’s success. From engaging with companies to building new processes and even creating new technological advances, everything that makes companies thrive rides on an employee’s ability to do their job and do it well.
Those in HR should take significant notice to the benefits human capital can bring to a company and work hard to develop processes that focus on building and finding human capital. According to experts in the human resource field, there is no limit to the ways in which employers can build human capital. Some of the most popular methods, however, include fostering growth in leadership positions, offering opportunities for learning and development, and creating a culture of engagement.
Aside from the aforementioned methods of human capital development, businesses can develop the talent within their workplace by focusing on opportunities to offer constructive feedback an create collaboration. According to research and advice from leading industry professionals, these things are what employees want most.
Time, a little innovation, and a little perseverance are what is needed to invest in human capital. Employees simply want to know they are valued and their expertise is making a difference. If employers are able to give them that confidence and also invest in their future, a business is likely to go a long way.
Taking everything regarding human capital into consideration, if you are a human resource professional or a company executive looking to take your business to the next level, you might want to put down the articles about the latest and greatest apps for efficiency and focus on the faces outside of your office window.