Human Capital, An Intangible Asset for a Company's success.

[BitDane]

I browsing the internet when I happen to stumble on the word Human Capital.  This is the first time I read about this terms and I got interested to know its meaning. 

According to this article[1]  Human Capital is explained as an intangible asset stemming from a person's talent and experience although it can't be put on our balance sheet but it is very important economic value  for a company.

Investopedia also explained Human Capital as[2]:

"The term human capital refers to the economic value of a worker's experience and skills. Human capital includes assets like education, training, intelligence, skills, health, and other things employers value such as loyalty and punctuality."

The article also stated that Human Capital can be made of several factor such as shown in the picture:




It is also stated that there are different types of Human Capital Namely:

• Knowledge Capital: Trade School Education, College Degree, Hard skills, Work experience, Situational Knowledge and Intelligence.
• Social Capital: Relations, Fame, Social Status, Professional Network and Health.
• Emotional Capital: Emotional intelligence, Creativity, Problem-solving, Personal resilience, Critical thinking, Loyalty, Leadership behaviors, Other soft skills

The article also gives a tips on increasing Human Capital like:
Human Capital can be increased by hiring more people but it is also possible to improve within the workforce.

• Improve education for your workforce
• Provide a work culture that encourages creativity
• Divide labor into specialized niches
• Hire a diverse workforce
• Provide ongoing coaching

The importance of human capital. 

Human Capital are people that make up a company workforce.  So choosing people with higher human capital simply means more beneficial for a company.  This is also the reason why many companies are spending lots of funds to give training to their employees.  Through it was stated that these training expenditures may temporarily decrease the company funds, the company will surely benefits from it since the investment will allow the employee to do their task efficiently thus delivering more profit to the company.

So for any investors that are aspiring to put up their company own company, one should consider learning about Human Capital because it will really lead a company to success if one manage it successfully.

For FAQ about Human Capital you can check this site: https://www.worldbank.org/en/publication/human-capital/brief/the-human-capital-project-frequently-asked-questions


[1] https://www.betterup.com/blog/human-capital
[2] https://www.investopedia.com/terms/h/humancapital.asp

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[Darker45]

I always admire companies and businesses, big and small, that heavily invest in human capital. A happy, healthy, and satisfied worker will always be a lot more productive than a worker who is underpaid, overworked, and is only keeping the job merely for the reason that he/she needs to eat three times a day. That's regardless of working hours.

There have already been numerous studies conducted in many parts of the world, for example, that found out that a 4-day working setup is much better than the usual 5/6-day working setup, not only in terms of the workers' health but even in terms of their productivity. Work-related burnout or stress which affects the workers' health and even personal relationships or social life affect their productivity. They'd be less active, less driven, less critical, and so on.

[Spaceman1000$]

I browsing the internet when I happen to stumble on the word Human Capital.  This is the first time I read about this terms and I got interested to know its meaning.  

According to this article[1]  Human Capital is explained as an intangible asset stemming from a person's talent and experience although it can't be put on our balance sheet but it is very important economic value  for a company.

Investopedia also explained Human Capital as[2]:

"The term human capital refers to the economic value of a worker's experience and skills. Human capital includes assets like education, training, intelligence, skills, health, and other things employers value such as loyalty and punctuality."

The article also stated that Human Capital can be made of several factor such as shown in the picture:




It is also stated that there are different types of Human Capital Namely:

• Knowledge Capital: Trade School Education, College Degree, Hard skills, Work experience, Situational Knowledge and Intelligence.
• Social Capital: Relations, Fame, Social Status, Professional Network and Health.
• Emotional Capital: Emotional intelligence, Creativity, Problem-solving, Personal resilience, Critical thinking, Loyalty, Leadership behaviors, Other soft skills

The article also gives a tips on increasing Human Capital like:
Human Capital can be increased by hiring more people but it is also possible to improve within the workforce.

• Improve education for your workforce
• Provide a work culture that encourages creativity
• Divide labor into specialized niches
• Hire a diverse workforce
• Provide ongoing coaching

The importance of human capital.  

Human Capital are people that make up a company workforce.  So choosing people with higher human capital simply means more beneficial for a company.  This is also the reason why many companies are spending lots of funds to give training to their employees.  Through it was stated that these training expenditures may temporarily decrease the company funds, the company will surely benefits from it since the investment will allow the employee to do their task efficiently thus delivering more profit to the company.

So for any investors that are aspiring to put up their company own company, one should consider learning about Human Capital because it will really lead a company to success if one manage it successfully.

For FAQ about Human Capital you can check this site: https://www.worldbank.org/en/publication/human-capital/brief/the-human-capital-project-frequently-asked-questions


[1] https://www.betterup.com/blog/human-capital
[2] https://www.investopedia.com/terms/h/humancapital.asp

Human capital is one great asset a company that desires to grow must have. Multinationals like Banks and oil companies spend a lot on human resources manager. The reason is to strengthen the mental capacity of their workforce, because they believe those workers are their image makers. The marketing department of any organization, does a lot of training and retraining of their staff, because this staff's go out to sell the companies product to the outer world and as such, they should be well informed.

China today is one of the leading force in the manufacturing industry in the world, this is because they have a high level of productive workforce (Human capital) that are well trained in different fields of production and manufacturing. So human capital is one key aspect of an emerging economy or a business that shouldn't be toyed with but rather be harnessed and improved upon.

[tread93]

In the age of Digital AI this term human capital will become much more well known in the future. And so will Bitcoin Capital 

[bluebit25]

"Human Capital" , I implicitly understand that it is human merit

Unlike merit on the forum, here I can understand it as a basic thing and the source for developing everything. Perhaps this term will be heard a lot in religions.

I feel that life operates in a fair way, and every result is created for a reason, from success or failure there is a reason for it. Similar to the example of growing an apple, if you want to have a delicious fruit, there are many factors to create it and vice versa, we ourselves as humans seem to be forgetting these truths in life. There is no need for anyone or any organization to do any research, just feel for yourself if the criteria the OP mentioned (not complete), I believe will be part of the subsequent success.

[dothebeats]

Human Capital is one of the biggest investments a company can have that easily and surely produce many advantages and possible profit for the business. However, it is always best to know (especially if you are an employee) if the company you are working for is not giving value for the things you are giving them (in this case being a human capital/asset for the company). I have seen and know a lot of employees who have great background education, amazing skills, and have such loyalty and dedication to the company that they are either paid less than they deserve or are never promoted. In the case of never getting promoted companies do this to avoid a raise for an employees rate, especially when they know that said employee is already doing more than what they are supposed to do without the raise in salary and position promotion. The point here is that much like the company itself employees should also know how much value they have in a company as they are after all the company's human capital.

[Chilwell]

There have already been numerous studies conducted in many parts of the world, for example, that found out that a 4-day working setup is much better than the usual 5/6-day working setup, not only in terms of the workers' health but even in terms of their productivity. Work-related burnout or stress which affects the workers' health and even personal relationships or social life affect their productivity. They'd be less active, less driven, less critical, and so on.

Working 4-days setup is much better than 5/6-days I definitely agreed with this statement of yours because working tirelessly will reduce the quality of the product, human are not machines they eat and drink and also get tired so given them a little breathing space will allow them to do good quality job and the company will be in fourth front. I am a factory worker, I left my former company due to the abused of Human Capital, in that company work 7am to 7pm with just one hour break, now if you calculate it we are working 11 hours straight without rest.

[slapper]

Your research on human capital is intriguing. Many items were found in your research. Human capital cannot be seen or felt, unlike machines and cash. Although it's not on the balance sheet, a corporation could fail without it

The Knowledge, Social, and Emotional Capital division is good. Like looking at a rock, each facet shines differently. But are these groupings always alike? What will "Knowledge Capital" imply when AI and other technologies improve?

Remember that employing different teams brings different skills and perspectives. Should we assess the ROI of improving human capital? A complex conversation but crucial to modern economics

[sesterceshop]

Investing in human capital is crucial for any company's success. A satisfied and motivated workforce can significantly boost productivity and contribute to the overall growth of the business. It's not just about the number of hours worked, but the quality of work that matters. Providing a conducive work environment and acknowledging the value of employees goes a long way in achieving success. Great insights.

[xSkylarx]

So human capital is the right term because on my head it was the core people or core employees that are kind of the blood of the company. This is really helpful to those companies that are wanting success no matter if they are start-ups or established companies because those are the people who do the job just to continue the transaction of the company. It is just sad that even though they already have those assets people they aren't paid well. I'm not saying all that but I've been from a company like that where they haven't taken care of their employees, they always think badly of them and the truth is that if all of those employees resign the company will fail.

[Findingnemo]

I always admire companies and businesses, big and small, that heavily invest in human capital. A happy, healthy, and satisfied worker will always be a lot more productive than a worker who is underpaid, overworked, and is only keeping the job merely for the reason that he/she needs to eat three times a day. That's regardless of working hours.

In reality, big companies are doing it until they need the employees and once there is a way to cut short their expenses on salary, no big company hesitates or is willing to lose their profit instead of firing people so there is always some dark story behind every company we may or may not know.

But as you said if they keep the employees happy the results will be more efficient but I am afraid of what the future holds for us, especially with the development of AI, people are gonna lose their jobs and they have to prepare themselves for it with an alternative revenue stream.

[livingfree]

In every enterprise, there's the human capital. It's like in every sector and industry that's needing human manpower.

But who knows if someday that because of the AI and the upgrade, innovation of technology, there will be industries where they will be no longer needing human capital because they're all reliant to machines.

Anyway, IMHO, there's always the need for a human capital whether there are machines, AIs or technology embedded business. There's a need for someone to operate and monitor those.

[icalical]

I always admire companies and businesses, big and small, that heavily invest in human capital. A happy, healthy, and satisfied worker will always be a lot more productive than a worker who is underpaid, overworked, and is only keeping the job merely for the reason that he/she needs to eat three times a day. That's regardless of working hours.

In reality, big companies are doing it until they need the employees and once there is a way to cut short their expenses on salary, no big company hesitates or is willing to lose their profit instead of firing people so there is always some dark story behind every company we may or may not know.

But as you said if they keep the employees happy the results will be more efficient but I am afraid of what the future holds for us, especially with the development of AI, people are gonna lose their jobs and they have to prepare themselves for it with an alternative revenue stream.

Very true, anyone who has worked for a company knows that in most company they don't really care about heir employee, all they care is profit. Everything that company do for their employee is so their employee can generate much more profit for the company. All those companies will not hesitate to just dump any employee if they aren't considered as profitable anymore. After all, the 'Human Capital' or 'Human Resources' is the easiest resources to be exploited.

[Husires]

Human capital is the resource that many countries are looking for that provide better job opportunities, immigration, or free study, as they save themselves a lot of time. Instead of waiting for the new generation, they search for people with experience and employ them or qualify them with high certificates and for smaller amounts. For individuals and societies, relationships represent wealth similar to their material value. A person who has good relationships and is active in society is similar to someone who has wealth. He can easily double his money once he achieves it, and he can get good jobs with fewer skills.

[Queentoshi]

Human Capital are people that make up a company workforce.  So choosing people with higher human capital simply means more beneficial for a company.  This is also the reason why many companies are spending lots of funds to give training to their employees.  Through it was stated that these training expenditures may temporarily decrease the company funds, the company will surely benefits from it since the investment will allow the employee to do their task efficiently thus delivering more profit to the company.

Maybe I am the only one who has had this thought, and maybe I am wrong too, but I am of the opinion that the Investment in Human Capital will soon be converted to investment in Artificial Intelligence to take over some of the jobs of workers who make up the workforce in some companies. A lot of Jobs done by humans for a company can now be automated needing lesser staff. Many workers will be cut off. Human resource of companies will take a new face with the inclusion of human supervised machines to work.

[aylabadia05]

Humans are active actors in advancing and harming a company both small companies and large companies. Not only for companies humans become valuable capital, but humans are valuable capital for this nature.

Because it is equipped with reason that makes humans different from other creatures, the understanding of human capital can be interpreted by many experts as a capital that is directly processed by the production process as said by Gary S. Becker in the book Human Capital: A Theoretical and Empirical Analysis With Special Reference to Education, Third Edition.

In the age of Digital AI this term human capital will become much more well known in the future.

AI is only man -made. AI proof that humans are valuable capital in realizing something useful.

And so will Bitcoin Capital 

Bitcoin Capital 

[Gozie51]

Maybe I am the only one who has had this thought, and maybe I am wrong too, but I am of the opinion that the Investment in Human Capital will soon be converted to investment in Artificial Intelligence to take over some of the jobs of workers who make up the workforce in some companies. A lot of Jobs done by humans for a company can now be automated needing lesser staff. Many workers will be cut off. Human resource of companies will take a new face with the inclusion of human supervised machines to work.

Al will not take the place of human capital you know why? Because they are different. Human capital is not necessarily same as workforce or when they say human capital, it doesn't only mean work force even though a means to know efficiency of human capital is either in the workforce or employee (s). So we can talk about human capital even if a company has one workforce. In other words, Al may eat up the work population or labour population but human capital still exist in the remaining staff, after all there is collaboration between employee and AL. More to this is that human capital is more superior than Al because Al is a product of human capital and it takes command from human capital. A more efficient worker is more productive with Al.

[Latviand]

Human capital is the resource that many countries are looking for that provide better job opportunities, immigration, or free study, as they save themselves a lot of time. Instead of waiting for the new generation, they search for people with experience and employ them or qualify them with high certificates and for smaller amounts. For individuals and societies, relationships represent wealth similar to their material value. A person who has good relationships and is active in society is similar to someone who has wealth. He can easily double his money once he achieves it, and he can get good jobs with fewer skills.

That's an old tactic, companies doesn't need to hire these people anymore and have them immigrate to the company of the country, they just outsource them which is much cheaper as they don't have to pay them as if they work in the company's country. That's why there's a rise in virtual assistant jobs in my country, the only time they're probably going to let their outsourced immigrate is when they really like that employee and want to meet them face to face.

[Helena Yu]

That's an old tactic, companies doesn't need to hire these people anymore and have them immigrate to the company of the country, they just outsource them which is much cheaper as they don't have to pay them as if they work in the company's country. That's why there's a rise in virtual assistant jobs in my country, the only time they're probably going to let their outsourced immigrate is when they really like that employee and want to meet them face to face.

Yep, if the developed country can find a qualified worker who's live in underdeveloped country, why not?

Let's say there's an employer who work in US company is looking for frontend developer, the average salary in US for this job maybe $10,000 per month, but the average salary in third world countries for this job is only $500 and they will be very happy if they get paid $1,000, the company can save $9,000 per month.

[Dave1]

In the age of Digital AI this term human capital will become much more well known in the future. And so will Bitcoin Capital 

Hopefully, it's not going to happen in the future though. Because if it did, then we might be in the era wherein AI will be totally replaced the human capital and that is a scary thought.

But as far as human assets goes, yeah, CEO's and companies have known this for years already, that a company success depends on it's employee and that's why they have given them perks and others intangibles that to stay with them and make the company grow.