The Value of Human Capital

Human Capital Index
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Jolanta Sz
Professor, Poland

The Value of Human Capital

🔥NEW Is 'human capital' a dream or utopia?
It sounds wonderfully true - albeit only in theories. The practices are different, sometimes a bit, sometimes totally...

  Jaap de Jonge
Editor, Netherlands
 

The Strategic Value of Human Capital is Huge

Nowadays Human Capital (even if just one of an organizationís intangible assets) should be considered the most important element of sustainable competitive advantage and also of core competences in most organizations. Human Capital in basic terms is made up of all competencies of all people (including the top management and boards) within an organization. These competencies include various skills, education, experience, potential and capacity.
That's why developing the human capital in any organisation is a major challenge for its leaders.
Also, changes and uncertainty in the business environment with increasing globalization, changing demographics and technological changes have also led to increased importance of managing human resources.
To create a workforce that can provide a competitive advantage and/or core competence many firms aim to create an environment that facilitates exchange of knowledge, motivation, and engagement that is difficult for competitors to imitate.

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