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What is human capital?

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Puru BhatnagarTop Contributor
Business Analyst, Entrepreneur, Business developer, Marketer

Human capital is a term given to workforce that are qualified to work in an organisation.

But in a broader sense, the human capital comprises of those labour which are capable of doing work and are critical to economic and social health of the world's nation.

So we can say that human capital is the concoction of knowledge, skills and experience and qualities which are socially acceptable and are capable to produce economic value to the nation.

Human capital is an effort to quantify the true value of an investment in human capital and is closely related to the field of human resources.

Human capital is more than just labour they work for an organisation and bring qualities and skills that are essential for  wrking of an organisation more efficiently.

Investing in human capital involves process like training program s and apprenticeship programs, educational bonuses, family assistance and in some cases funding college scholarships.

Human capital theory holds that it is possible to quantify the value of these investments to employess, employers, and society as a whole.

According to human capital theory, an adequate investment in people will result in growing economy.