How will you invest in human capital?
Answers
Explanation:
Human capital is the measure of the economic value that an employee provides, through their knowledge, skills, and abilities.
On average, total human capital costs are almost 70 percent of a company’s operating expenses. Despite how much employees cost, many companies do not properly invest in an employee development plan, in their human capital.
According to the 2015 Talent Mobility Research Report, more than 40 percent of organizations claim that they rarely, or never, provide career planning or development. If your company is part of this 40 percent, you should strongly reconsider your approach to managing your human capital.
To reap the most benefits from employees your business needs to invest actively in them. Here are eight benefits of investing in your human capital development.
Explanation:
Human capital development" has definitely achieved buzzword status. As a phrase, it’s ubiquitous in the entrepreneurship and business-oriented press. You can even study it through a certification program at an Ivy League university.
But what, exactly, is human capital development? More importantly, why is it so important for business success, and how does a small business owner go about actually investing in it the right way? Sure, it might make sound financial sense -- and constitute a relative drop in the budget bucket -- for a large company. But, does it even make sense for smaller businesses, with smaller budgets that may already be stretched thin?
Use the following five-step program to create your company’s best human capital development strategy and tactics.
1. Understand what human capital development is all about.
First and foremost, let’s get clear on what human capital development is all about. At its simplest level, human capital is a way to quantify the economic value of a specific employee’s set of skills.
Like all forms of capital, human capital is an essential component of your company’s long-term assets. The collective profile of skills for all your employees ideally meets your company’s needs, but more importantly, it also adds to your company’s intrinsic value.
Developing that capital -- that is, investing in the further enhancement of those skills in a way that adds to that value -- is a smart financial investment in your own company. It’s also