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Human Capital Does not Depreciate
H. M. Faridur Rahman, HR Consultant, Bangladesh, Member
HC is the only capital of an organization that has got no depreciation. Rather human capital becomes more valuable in the course of time and adds more value to the organization. (...) Read more? Sign up for free
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@Faridur Rahman
Chris Bennett, Business Consultant, Singapore, Member Human capital only maintains its value and appreciates if someone invests in learning and development. Otherwise skills and knowledge become outdated or superseded and the human asset of the enterprise depreciates.
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Non-depreciation of Human Capital
Jaap de Jonge, Management Consultant, Netherlands Perhaps it is useful in this topic to see that human capital (as is also the case with knowledge) does not depreciate or decrease in value BECAUSE OF USING IT, as is normally the case with other forms of capital. On the contrary it will rather increase / become more valuable.
I believe Chris is right to point out that when human capital is poorly maintained it will become outdated and will decrease in value. We can see this effect clearly when bright employees are not challenged and actively developed. First they will become bored and next they will look for challenges outside of the company. This then decreases the value of the remaining human capital of the first company.
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Special Interest Group Leader
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Human Capital Index
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Summary
Forum
- Human Capital Does not Depreciate
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