Human Capital Does not Depreciate

Human Capital Index
Knowledge Center


H. M. Faridur Rahman
HR Consultant, Bangladesh

Human Capital Does not Depreciate

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.


Chris Bennett
Business Consultant, Singapore

@Faridur Rahman

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 Otherwise skills and knowledge become outdated or superseded and the human asset of the enterprise depreciates.

Jaap de Jonge
Editor, Netherlands

Non-depreciation of Human Capital

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I believe Chris is right to point out that when human capital is poorly maintained it will become outdated and will decrease in value.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.

Ulrich Schweiker
Director, Germany

Dependency on Point of View

As Einstein and Heisenberg have pointed out, all depends on the standpoint of the valuator. Thus we ... Sign up

Ulrich Schweiker
Director, Germany

No Carte Blanche for Investments in Learning and Development!

As usual HR claims to have a stand-alone argument for spending money - independent of context. We s... Sign up

martin muthomi
Student (University), Kenya

Human Capital Appreciates over Time!

Human capital is an asset that appreciates over time. As such it is better to hire fresh professio... Sign up


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