What are the different types of human capital theory?

Human capital theory attempts to explain the relationship between productivity, employee skills and average reward. Some theories explain that a higher level of skills acquired through education can significantly affect the supply and demand of workers in certain categories. Other theory of human capital states that wages can be largely determined by the nature of work that can directly affect supply and demand. Employers can also look for a maximum return on investment from their employees, which is simply the income and efficiency obtained from the work of minus work and training costs. If a highly educated worker is employed in a position under his knowledge and skills levels, it is more likely to become dissatisfied. This can lead to turnover if the labor market conditions are in favor of an employee. For example, another employer can see individuals with greater responsibility, more specialized work obligations or payment rate more in accordance with its KValification.

higher levels of remuneration do not necessarily have to be associated with advanced education or skill. Some industries and positions may have to offer lucrative salaries to attract workers. For example, construction and delivery tasks that expose workers to increased danger and potential injury must provide motivation to candidates. According to some forms of human capital theory, unless a higher wage is offered, the company may not be able to hire a qualified workforce in adequate numbers.

Supplies and demand factors are a major part of human capital theory. Professions that receive the influx of applications from qualified workers can offer lower wages, while jobs that are not popular but need highly qualified workers can offer above -average rewards.Recruitment departments of companies. At a time when the labor market is flooded with qualified workers, the average market wage tends to be reduced, but some professions may be unaffected due to the high need and low offer of suitable candidates.

When companies determine the structure of payment, they often try to maximize their return on labor costs. Since wages and benefits can be one of the most important expenditures that the company can increase, various creative methods can increase revenues. Some of these tactics include job sharing, where two individuals share the same job and distribute a full -time salary. Other companies hire fewer workers to deal with greater responsibility, and can only slightly increase their salary or have a remuneration structure.