What is the difference between human capital and human resources?

The difference between human capital and human resources is that while human resources are focused on the work that people do, human capital is more interested in the abilities and training people have people. Human resources can also be defined as a branch in an organization that oversees the recruitment of capable employees, while human capital is a degree of abilities and skills that the department of human resources requires from potential employees. Another way to look at the difference between human capital and human resources is to explore the various factors that make up two concepts. In its general sense, capital concerns an investment that is able to obtain revenues beyond the initial investment for its life. For example, the production plant may be described as a capital investment that will bring profits to investors beyond the initial used moneyzak or set up a plant and any other operating costs. In the same sense, capital investments in human beings are also capable of POSto flow dividends beyond the initial money or investment.

The distinguishing factor between human capital and human resources is that human capital concerns the return on investment, one of the duties of human resources is to identify potential employees who have the type of capital needed. The department of human resources is also responsible for deciding how the organization can invest in human capital to improve the fund of available employees. The organization understands that the more human capital improves, the more the organization will be in the long run. That is why some organizations offer training, conferences, seminars and further education to their employees. Such an investmenter in human capital will bring rewards in the form of an improved and efficient performance of employees.

Human capital includes members such as education, training, personal development and physicianGroup. This can be paid by schools, mentors, training camps and hospitals. Since human beings are associated with any capital investment concerning their work skills, they will always be attached to training or education, even if they no longer work for the company or organization responsible for initial capital investments. Such a concept is also separated by human capital and human resources, because human resources as a department in the organization will always be connected to the organization.