Human Capital Does not Depreciate

      
			              Forum
			            
							              12

		            		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.
				      
X

							  			Welcome to the Human Capital Index forum. The topic being discussed here is: "Human Capital Does not Depreciate". 
										
Get access to all of our 900 knowledge centers about management.  Join more than 1,000,000 other members. 

										Log in

Comments

																	  	Sort by date
																	  	Sort by rating
																		
Rating

										              2

						            	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 Otherwise skills and knowledge become outdated or superseded and the human asset of the enterprise depreciates.
				                
										              9

						            	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I believe Chris is right to point out that when human capital is poorly maintained it will become outdated and will decrease in value.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.
				                
										              0

						            	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
				              
										              2

						            	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
				              
										              -1

						            	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
				              
Leave a comment

		                            More on Human Capital Index:
		                          
													            	Summary
													            
												              Discussion Topics
												            
		                          	👀Human Capital Does not Depreciate
Shareholders and Human Capital
Importance of Human Resources
H2 Use Human Capital More Effectively?
🔥The Value of Human Capital
Human Resources Capacity Planning Tool

		                              Special Interest Group
		                            
Do you know a lot about Human Capital Index? Become our SIG Leader