Question

explain any three benefits of making investment in human capital?

Answer 1

An investment in human capital meansinvesting in education or some form of on-the job training to improve workforce quality. Such investments provide returns to the individual as well as to the economy as a whole. Individuals benefit from higher earnings, and the economy as a wholebenefits from higher productivity

Answer 2

1. Increase employee satisfaction

Investing in professional development for your staff can lead to greater job satisfaction. According to a 2014 survey by the Society for Human Resource Management, 42 percent of employees said their organization’s commitment to professional development is “very important to their job satisfaction.”

Internal professional education for your staff shows them that your business cares about their careers. When your employees feel that their workplace cares about their development, they are more likely to be satisfied with their jobs.

2. Improve retention rates

Almost 54 percent of workers said that career advancement opportunities are more important than salary when looking for work. Additionally, 44 percent of employees cite a lack of opportunity for growth and advancement as a top source of work stress. These statistics show the importance of career growth to employees.

Workers who are receiving professional education and development are less likely to seek other employment opportunities. So, if an employee can advance within the company, he or she won’t have to look for advancement opportunities outside of the company.

3. Develop employee engagement

Increasing employee engagement is a priority for every business. Engaged employees are more productive for, and more loyal to, the company. According to a survey by Gallup, only 32 percent of workers feel engaged at work.

Investing in employee development can help to grow your employee engagement. Giving your staff career advancement opportunities, and investing in their development, gives them a reason to be engaged at work.