Human Capital

What is human capital

human capital is the value given to the skills of the staff working in a companythat is, level of education, general knowledge, skills and accumulated experiences, in order to generate greater productivity and economic development.

The productive capacities of the people are the ones that matter because with them the economic, material and immaterial capital of the company is manipulated based on its development and competitiveness.

To achieve optimal performance of human capital, staff must be continuously trained, which generates well-being and labor performance through motivation and provision of the right tools.

Characteristics of human capital

  • It is part of the analysis of the new economic dynamics.
  • Promotes organizational culture.
  • It refers to the effective use of technological resources for the company and its environment.
  • Seeks to expand market scope.
  • Productivity, creativity, innovation and competitiveness are optimized.
  • Enhance the value of the company or organization.

With these characteristics, the importance of human capital is exposed for its contributions in the development and continuous progress of a company.

For this reason, companies have an administration or human resources department designed to assess when it is necessary to invest in staff training and tools, to improve productivity and work results.

Human capital theory

The term human capital originated in the mid-twentieth century, and has been studied and developed through the lines of research of the economy and of the sociologygiven its impact on these areas.

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Among the authors who made important contributions to the term are Adam Smith, Theodore W. Schultz and Gary Becker.

From the different lines of research on human capital, it has been considered that the term can be applied as a variable in various investigations. For example, as a variable to explain various economic growth models of a company, institution or country.

See also Capital in economics.

Importance of human capital

Physical and patrimonial assets can be maintained over time. However, human capital is a intangible resourcemade up of people who have goals or purposes that motivate them to change jobs at any time according to their particular needs and conveniences.

Therefore, the organizational culture emphasizes that the education and training of employees must be understood as an investment that will bring profits by having qualified, productive and competitive personnel, to achieve a high position for the company.

On the other hand, if the perspective of human capital is broadened, it will even be possible to understand the repercussion that the term has in terms of the economic, political and social development of a country, by including moral and ethical aspects that are related to the productive capacities from qualitative and quantitative points of view.

See also the meaning of organizational culture.

Examples of human capital training

  • Hire staff who have a high academic degree, for example, a master’s degree.
  • Offer competitive salaries.
  • Have benefits such as free cafeterias or restaurants, childcare centers, among others, which can mean savings for employees and less worry about daily tasks.
  • Encourage employees to generate or innovate projects.
  • Constantly invest in staff training.
  • Each employee must meet a goal or objective in a given time.
  • You can work from home, which means savings on transportation or fuel.
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