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

[Gyfts]

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

Diversity in hiring used to mean ranges of individuals with diverse skill sets. Now, companies have turned diversity hiring to be based solely on race and not skill, sometimes turning down more qualified candidates who aren't of a particular skin color.

I suppose the logic is that diversity in race adds to social capital of a team -- but it's been refuted over and over again that race as a factor alone improves dynamics in the workforce or in academia. No evidence that "diversity hires" do anything but add to a company's ESG score.

[1715100921]

1715100921

[Cryptomultiplier]

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.

Frankly so is the distinction between human capital and workforce. No idea can really work without having the right person to interpret the idea into physical form/structure.
 Even the government needs human capital, in the form of intelligence. The right intelligence I mean.
 It is a quality invested human capital, that can lead a workforce and automate an AI to achieve the desired and well implemented idea to maximum efficiency.

The importance of the right human capital in the success of a company is and never be overlooked.

[Unbunplease]

Frankly so is the distinction between human capital and workforce. No idea can really work without having the right person to interpret the idea into physical form/structure.
 Even the government needs human capital, in the form of intelligence. The right intelligence I mean.
 It is a quality invested human capital, that can lead a workforce and automate an AI to achieve the desired and well implemented idea to maximum efficiency.

The importance of the right human capital in the success of a company is and never be overlooked.

However, it should be taken into account that AI will continue its active attack on all spheres of human activity. It is not excluded that in 5 years, humans will be replaced in more than 30% of the work that is now performed only by humans. Therefore, one should not be complacent about the fact that AI is still imperfect

[|MINER|]

Human resources are very valuable assets for a company.  Most of the companies know that by developing human resources, the company can progress much faster.  Oil companies spend a lot of money on human resource development.  Talent development through education, strategy, intelligence etc. play a role in creating human resources. However, the world is improving now. It is now seen in almost companies that they are giving more priority to virtual bots than human resources.

[DrBeer]

The idea is beautiful, but in some places idealized and "detached" from reality.

I will touch on only one issue: training, staff development. First of all, it is not mandatory for all positions or specialties, but it is a topic for a separate discussion. I can give an example from my field - IT.
On the one hand, it is very logical that a specialist (programmer) working in a software company is more valuable and in demand, the higher his qualification, experience and knowledge of technologies. And for a company, for example, a development outsourcer, it is profitable. As well as their competitors Therefore, "investment" of a company in training its employees is a favorable and generally forced measure, but after that it is required to create conditions for "retaining" this employee in whom the company invested money.
If you sign a "rigid" agreement on "compulsory workout" - it will turn employees away from the company. The second option is to provide a higher income so that it is not "bought out" by competitors. And this is not a very simple process...
In short - the idea is good, but there are nuances

[Fortify]

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.

It's true that the collective acquired knowledge within certain businesses is what ends up giving them the edge against their competitors. It is very easy to overlook and just assume everything is running well because of all the processes or technology residing in a business, but often it's the actual people within it who keep it ahead. This can sometimes show when companies are taken over and a cost cutting exercise is embarked upon in the new purchase, key staff can be stripped out as part of cost cutting exercises but then the once glorious acquisition can start to fall over and fail. The workplace culture that certain people can bring makes a huge difference, if you're surrounded by happy, intelligent and productive people who are constantly learning - it can create a fantastic environment.

[cafter]

if you want to start a business in future then keep in mind that not only investing in your employees is important but also hiring a right person for right role is important.
how it will be like to giving computer training to an uneducated labor worker.
We can know many things about a person in a interview with him, like his past experiences, internships, questioning about the role, why he choose this field, etc.

I agree human capital is a key to companies success that's why apple, microsoft, google, like big companies gives their employees competitive compensation and benefits packages.

[TimeTeller]

if you want to start a business in future then keep in mind that not only investing in your employees is important but also hiring a right person for right role is important.
how it will be like to giving computer training to an uneducated labor worker.
We can know many things about a person in a interview with him, like his past experiences, internships, questioning about the role, why he choose this field, etc.

I agree human capital is a key to companies success that's why apple, microsoft, google, like big companies gives their employees competitive compensation and benefits packages.

And this is the reason why some companies are willing to invest on their people by providing them with competitive trainings, seminars and other means to gain more knowledge about their role.
Some small companies may think of the money that they will spend, but they forget to look at how it will help them in their respective roles in the company.
What they usually think is that after they gained such knowledge or expertise, that person may find a better job.
However, their knowledge will be stagnant if they will stay on their job without additional skills to use.
So it depends on the management how they will keep up with the competition and provide competitive package to their employees, so they will stay in the company.

[Baofeng]

if you want to start a business in future then keep in mind that not only investing in your employees is important but also hiring a right person for right role is important.
how it will be like to giving computer training to an uneducated labor worker.
We can know many things about a person in a interview with him, like his past experiences, internships, questioning about the role, why he choose this field, etc.

I agree human capital is a key to companies success that's why apple, microsoft, google, like big companies gives their employees competitive compensation and benefits packages.

Definitely, and that's why it will go on several process, eliminate those applicants that did not fit the role and zone on employees that you think might be the right fit for the job.

Yes, capital is the key to being a successful company, so it's very important to look for the right personnel. And if ever you find one, then give the personnel good benefits and compensation so that it won't just leave you and go to your competitor because they have a better compensations and benefits. And this is why Apple, Google and Microsoft get their best employees, it's not just pure work for them, but employees have some fun too.

[serjent05]

It is indeed the workforce is the driving force for a business's success.  The right choice of people and the right path of workforce learning enhances this success.  A business is nothing when there is no workforce behin it, or the human capital is not managed enough to produce the desired result that give  a company more profit.

Giving training to people, allowing them to have a good enough rest, and paying their overtime accordingly will enhance the workforce's loyalty thus can help in securing the future of the company.

[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.

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.

Of course, and it's completely understandable. Companies are business entities. They aren't charitable institutions. Their purpose is to make money. If people have a choice whether to work for them or not, they probably won't. But most of us look for a job. We need to earn, and the most common way to do it is to be employed in a company.

But while the ultimate goal of a company in investing in human capital is its profitability, we give credit to those that somehow look after the welfare or well-being of their employees. We take note that we aren't indispensable. Other companies are cruel to their employees. Especially in developing countries, or even in highly developed ones like China, where labor force abounds, many don't care about their employees. They're cheap and are easily replaced.

[Jawhead999]

Giving training to people, allowing them to have a good enough rest, and paying their overtime accordingly will enhance the workforce's loyalty thus can help in securing the future of the company.

Imagine you're have a company and you're really care with your employees for giving many good thing for them, but after next few years they submit a resignation letter

You expect them to work for you entire of their life because you've give many training course, development, pay good amount of salary etc, but the reality people comes and go, all of your investment in human capital are become useless because you need to spend more money to train the new employee.

This is why investing in human capital isn't good.

[Iroh]

Human capital is no doubt a valuable asset to an organization and when it’s recognized and utilized in an organization, the organization would definitely grow.
Organizations today recognize the great benefits human capital can bring to the organization and that’s why they have the HR Department to help the organization cash in.

A happy and satisfied employee would be extremely loyal, motivated and would go all out to ensure the success of the organization.

[bayu7adi]

Giving training to people, allowing them to have a good enough rest, and paying their overtime accordingly will enhance the workforce's loyalty thus can help in securing the future of the company.

Perhaps true, perhaps not. I concur with the idea of providing training because it's akin to giving them the opportunity to grow. If we generalize the method of boosting employee morale by raising salaries, it indeed can provide them with an instant burst of enthusiasm. Even workers tend to feel happier when they receive more money on payday.

However, loyalty cannot be bought with money alone. Everyone has their own perspectives regarding their jobs. Some reasons why people want to stay motivated and engaged at work include having harmonious team dynamics, a clear career path, a healthy work environment, opportunities for personal growth, and more. High salaries also serve as one of the motivating factors.

The bottom line is to ensure continuous communication with employees to understand what is needed to keep their spirits high at work.

[dothebeats]

Human capital is no doubt a valuable asset to an organization and when it’s recognized and utilized in an organization, the organization would definitely grow.
Organizations today recognize the great benefits human capital can bring to the organization and that’s why they have the HR Department to help the organization cash in.

A happy and satisfied employee would be extremely loyal, motivated and would go all out to ensure the success of the organization.

I agree with you. When a company or organization shows much value to human capital they will be able to form a better relationship with their employee which obviously results in a better performance from them. As much as it is a great thing for employees, it mostly has a direct impact on the company as the effects of such gives the company good results. Moreover, companies that value their employee and acknowledge human capital creates a good image for the company especially for investors, consumers, and future employee as it shows just how humane and humble a company is, as well as how they value their team.

[Sayeds56]

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.

You have highlighted a crucial factor that can determine the success or downfall of any company, and that is the strength of its human capital. Investors and management of the companies should emphasize on hiring right person for the right job, providing ongoing training and development and create a culture that values and nurtures the human capital. It can become a driving force behind a company's success and growth, when managed effectively.

[Mr. Magkaisa]

         -   Most people don't know about this human capital. Most of the time, they only hear about it, but they don't know what part it plays in the success of a company. In fact, it contributes a lot to the company's success. And one of these is that it can provide innovation and improvement, and it can also raise or boost the reputation of a business.

And above all, it also provides good service to their customers because the employees of a business are well trained and skilled. Because if it is not applied correctly, nothing will happen to a company that will have a good profit and market shares.

[Negotiation]

Human resources are good for companies human resources plan is the process of predicting the needs of the future human resources of an organization and how to meet those needs. Analyzing current workforce is the prediction of future human resources based on business goals, strategies and inferior growth, also to develop solutions to fill these vacancies through the combination of training development programs setting any gap between the present and future needs. It also helps to determine the number and types of employees needed to support the company's goals, growth plans and strategic initiatives.

[Dr.Bitcoin_Strange]

First of all, yeah, human capital usually contributes to the success of a company in different ways, but some companies in some parts of the world don't usually appreciate it when their staff shows all this human capital. Normally some companies or organizations are already paying a small salary, but it doesn't sometimes matter to them the kind of effort that the staff is putting into the company for success; what they only seem to realize and act faster on is when the staff is not being steadfast; they seem to recognize mistakes quicker than effort. Sometimes it even becomes unfair that a staff member will put all their human capital to work but will never get a salary increment or some incentives, but it will still be required of them to keep doing their best. I am not saying it is so with every company, but what I am talking about is something that is common in some organizations, and I also do watch things like that in some movies .

I don't just want to start telling stories now  .

[lionheart78]

First of all, yeah, human capital usually contributes to the success of a company in different ways, but some companies in some parts of the world don't usually appreciate it when their staff shows all this human capital. Normally some companies or organizations are already paying a small salary, but it doesn't sometimes matter to them the kind of effort that the staff is putting into the company for success; what they only seem to realize and act faster on is when the staff is not being steadfast; they seem to recognize mistakes quicker than effort. Sometimes it even becomes unfair that a staff member will put all their human capital to work but will never get a salary increment or some incentives, but it will still be required of them to keep doing their best. I am not saying it is so with every company, but what I am talking about is something that is common in some organizations, and I also do watch things like that in some movies .

I don't just want to start telling stories now  .

If this is the case then the company is missing out.  I bet these employees who suffer such exploitation don't have loyalty to the company and they will leave the moment they find the greener pasture with the same treatment or better.  However, I cannot deny that many companies thrive like these since they are just lucky to have more people looking for a job than the job availability. This mostly happen to casual employees at the lower level of the chain.  But on the higher level job where education, mastery, management, and critical thinking are involved, companies are taking good care of them since they know that the services offered by these individuals are very essential to the company's success.