Definition of Human capital:
The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.
Health, knowledge, motivation, and skills, the attainment of which is regarded as an end in itself (irrespective of their income potential) because they yield fulfillment and satisfaction to the possessor. In an organizational context, human capital refers to the collective value of the organizations intellectual capital (competencies, knowledge, and skills). This capital is the organizations constantly renewable source of creativity and innovativeness (and imparts it the ability to change) but is not reflected in its financial statements. Unlike structural capital, human capital is always owned by the individuals who have it, and can walk out the door unless it is recorded in a tangible form, or is incorporated in the organizations procedures and structure.
The concept of human capital recognizes that not all labor is equal. But employers can improve the quality of that capital by investing in employees—the education, experience, and abilities of employees all have economic value for employers and for the economy as a whole.
Human capital is an intangible asset or quality not listed on a company's balance sheet. It can be classified as the economic value of a worker's experience and skills. This includes assets like education, training, intelligence, skills, health, and other things employers value such as loyalty and punctuality.
How to use Human capital in a sentence?
- Human capital is perceived to have a relationship with economic growth, productivity, and profitability.
- Often overlooked when launching a new online service is the amount of human capital required launch an idea onto phones and computers around the world.
- Like any other asset, human capital can depreciate through long periods of unemployment, and the inability to keep up with technology and innovation.
- After the devastating earthquake, rebuilding and recovery would not have been possible without the selfless investing of volunteer human capital .
- Human capital can be more valuable to employers than physical assets because of the time and expense needed to hire, train and retain qualified staff.
- An economy well endowed with human capital is likely to experience a high growth rate.
- Since all labor is not considered equal, employers can improve human capital by investing in the training, education, and benefits of their employees.
- Human capital is an intangible asset not listed on a company's balance sheet and includes things like an employee's experience and skills.
Meaning of Human capital & Human capital Definition