What is the meaning of human capital?

Human capital is a term used to identify the expertise that the employee gains at work, usually through a combination of experience and work training. Capital of this type benefits both employees and employers over time, several ways. The importance of human capital can be observed in terms of productivity that helps to move the company closer to its goals, and also to provide employees with other resources that can help in developing their careers. The performance of this type of investment in an employee can go a long way to increase the level of productivity every employee brings his / her work duties. At the same time, the importance of human capital is obvious when this employee decides to stay with And seek opportunities for progress. From this point of view, the company generates a continuing offer of qualified employees who can enter any vacancies that develop within the company over time,This will significantly reduce the amount of time required to train individuals in business culture and the particulars of the fulfillment of these roles.

employees also benefit from this type of investment process. Here, the importance of human capital is to do with the employee's ability to proceed in his career on the basis of skills, training and experiences that are accepted at work. If an employee wants to stay with the employer, these other abilities will strengthen the potential for progress in the company's ranks, which eventually leads to higher salary and other benefits. At the same time, the increase in human capital can also make this employee more attractive to other employers, allowing the opportunities to be used elsewhere if it is not available with the current employer.

underestimation of the importance of human capital will have a negative impact on almost any business. The inability to recognize and promote the development of other skills inEmployees limit the level of productivity achieved by the employees, which in turn hurts the lower limit of business. At the same time, investment in human capital can help increase employee loyalty and save the company over the years a large amount of money. For this reason, many businesses go largely to not only provide training opportunities that increase employees' performance in the short term, but also provide chances of using this expertise and experience for many years to come.