“Human Capital” is a set of sciences, habits, and social and personal characteristics (such as creativity) that lies within the ability to work to create economic value. The phrase “Human Capital” considers the fact that the total work done by different individuals is not equal. But the employer can improve this human wealth by investing in their employees. Instructions, experiences, and skills of the employees are all valuable economically for the employers.
Human capital is important because it has been concluded that it increases productivity and, consequently, profitability. Meaning the more an organization invests in its employers (by educating them), the more productive and profitable this investment will become.
The staff of every company and organization are considered as the heart of that company and no organization can carry on without its workers and this is a proved matter. Therefore, by improving their knowledge, employees boost their efficiency and result in the enhancement of any company. Considering the fact that the world of modern business is a dynamic and competitive environment, many organizations are concerned about enhancing their human resources so they can keep up with other competitors of theirs. Through human capital, it’s possible to raise skill learning and gaining knowledge among the employees. Development and management of the staff in the organization besides their main fields of responsibilities makes them the crucial resources of the company in the future. They also play a definite role in the triumph of the company by ensuring participation and assistance in the organization.
