WHAT IS HUMAN CAPITAL?
As the most crucial factor of
production which gives value to the remaining factors, the people working for
the firm have been given several labels in various situations – staff, worker, labor,
and employee among a few others.
Human Capital refers to the economic
value of a worker’s training, experience, and skills. Besides the definition of
human capital as the human being, human capital also refers to the varied
qualities acquired by an employee in any given business setup that when engaged
efficiently, translates into profits for the business. They include
communication, analytical skills, education, technical skills, creativity,
experience, mental health, and personal resilience.
The idea of Human Capital can be
traced to the 18th century when business owners regarded people as
tools needed to turn out goods for sale or hands to deliver a particular
service targeted at fetching them monetary value. In the relationship that
existed, business owners did not have anything to do with what the employees
thought or felt about the work at hand – they were more of the brains of the
business and the workers were the limbs to execute the already determined workplan.
As tough,
inconsiderate, and hostile as the historical relationship between business
owners and workers was, the narrative has largely changed today. There is a
completely different approach to employee relations in today’s world of work.
Any business management or leader that undervalues or underestimates the place
of employees is simply not interested in staying in business, let alone
becoming competitive in any industry.
In today’s labor market, there are
three main categories of labor available: the unemployed, the underemployed,
and the employed. While the unemployed have no form of engagement from
which they get paid, the underemployed have some arrangement with an individual
or a firm usually engaged in works they did not train for or doing things they
over-qualify for, as a result of the lack of their desired jobs, they make do
with such engagements for some wages just to
earn a living. The employed are the group of top-notch employees who are
formally engaged with work at probably a senior staff level but always on the
lookout for another higher-level job along their career pathway.
Each person who desires to be employed
in any job setting must develop him or herself to be relevant to the business
goals of the firms they want to be a part of. Unlike the times past,
individuals who are looking for job offers must know what they have and find
who needs to engage their skills for value translated as profits. In the same
vein, already employed workers who have not justified their role and place in
the achievement of the firm’s goals are being dropped off in building
efficiency. What sort of human capital are you? Are you a capital to the gains
of the firm or you are a member of the staff? Thank you for reading. Please let us know what you make of this article in the comment section.
Paul Anang Amasah
THE COLLEGE BUSINESS CONSULT
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ReplyDeleteGreat piece
ReplyDeleteGreat piece !
ReplyDeleteGreat piece
ReplyDeleteEvery human being is a resource, to be unemployed means you are not being very resourceful to the marketplace and if you have a degree and still unemployed, it simply means you wasted the intellectual and financial resources invested into you to be resourceful.
ReplyDeleteTo be underemployed means you are working hard enough from getting fired and your employer pays you well enough from quitting.
How valuable you are to a company determines how much you are paid. If I help a firm make $20,000.00 a month, it's not difficult for them to invest 20% of that in you to keep on making $20,000.00 and more.
What skills, ideas, knowledge, products do you have or can you provide to solve a public pressing need?
"There is No Defense Against an Excellence that Meets a Pressing Public Need." Les Brown
This is very insightful
ReplyDeleteThis was very educational
ReplyDelete