Human Capital

Human capital is the economic and labor value provided by an employee to an employer. The evaluation of this value is related to the ability, knowledge and experience that the worker has. Factors such as formal education and participation in training are highly related to the workplace also helps improve talent representing the employee. As one of the basic factors of production, human capital is essential to the operation of virtually any type of business. Employment that persons who have the necessary experience, judgment and the ability to function within their roles enables business to work more efficiently.

This in turn increases the chances of obtaining a benefit, and a possible success for many years. The fact of not identifying individuals with the necessary combination of skills, experience and education could undermine the efforts of even of the more organized company. Companies usually make investments in human capital. Just as a company can invest in new technologies to improve their internal communication processes, the company can identify employees who demonstrate an aptitude for the skills needed and will ensure that employees receive professional instruction. This allows the company to have access to a broader set of skills, without the need to hire more people. At the same time, the company contributes to raise the economic value of each employee.

An example of how in an individual gives capital development human are professional athletes. Often, the athlete begins a process of preparation for a career in sport, learning the basics of this sport, receiving instruction in specific strategies related to participation in a current sports event, and ultimately gaining experience playing that sport. Assuming that the combination of knowledge, talent and experience are sufficient, the athlete will offers the opportunity to play professionally, where he or she gains more experience. Throughout this process, the economic value of the athlete is increasing, resulting in increased value to the capabilities of the athlete and an intense quality control to their functions. Human capital is a form of value that must only be understood in economic terms. The value of this type does not include consideration of the value of the person in the family, community or other aspects of the social network in which plays. Attention focuses strictly on the skills, knowledge and experience that the individual possesses, and they are worth much these assets for a specific employer. For this reason, individuals must not only based their total value in terms of human capital.