Human capital

Human capital is a term from economics and business administration, but also from economic policy. Human capital is understood to mean the performance potential of the workforce, which through innate abilities, upbringing, training, continuing education is determined by work experience.

It enables the labor force or groups of labor force to carry out economically viable activities and thus to generate income. Human capital is widely believed to be the foundation of economic growth and productivity. Critics reject this technical term, however, because, in their opinion, it reduces the importance of people to their economic value.

Further explanation:

Human capital is the performance potential that employees of a company bring in or could offer.

This performance potential should be at the Company valuation to be assigned a value and to be activated in such a way that it has a value-added influence on the business. The approach of intellectual capital has recently been used for this purpose. This approach teaches a) how people's performance potential can be measured and b) how it can be used for the company.

A distinction must be made between human capital from the perspective of the employee and from the perspective of the company.

Human capital is determined by the knowledge present in the minds of employees. As such, it cannot be completely owned and controlled by the company. It remains tied to the respective person. It only benefits the company as long as the employee belongs to the company and is willing to cooperate.

With Knowledge management an attempt is made to collect the knowledge of the employees (in the sense of personal know-how or knowledge from experience), to codify it and to store it in databases in order to be able to keep and use it even after the employee has left.

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Further explanations for the first letter "H"