A culture of organizational learning helps enhance human capital.
Human capital is the value inherent in the capabilities, skills and knowledge of individuals . The concept usually refers to a company's asset made up of the work experience, technical competencies and skills of its employees.
It must be clarified, however, that the notion can be understood in different ways. In a broad sense, human capital is associated with the set of women and men who provide value to an organization .
Sometimes there is confusion between human capital and human resources . The difference is that human capital points to educational training and skills, while human resources are associated with the work performed by workers.
Different views
As we already indicated, there is no single definition of human capital. Depending on the context and the perspective adopted, the expression can refer to different issues.
Human capital can be considered as a factor of production that depends on the training and productivity of a worker. To improve this factor, it is necessary to invest in people training .
It is believed, in this framework, that as an individual's level of training and experience grows, so does his or her productivity . That is why companies must allocate resources to the development of their human capital.
Human capital can also be defined as the value implicit in an entity's workers . In this way, it is the set of talent , knowledge and abilities of the employees. Just as a corporation needs economic capital to function, it also requires human capital. Otherwise, generating profits is impossible.
Employee experience is key to human capital.
Importance of human capital
Human capital is a resource that allows the achievement of a goal . With the professional training, soft skills and job performance of its employees (that is, with human capital), a company can obtain benefits.
The importance of human capital is evident. It is clear that, for a company, investing in human capital is a rational decision since it is a vital instrument to achieve its goals. The greater the training of employees, the greater the "quality" of human resources, which increases productivity and makes it more feasible to achieve objectives.
Adequate human resource management is required to enhance human capital. On the one hand, the company must have a policy of investing in education and promoting on-the-job training . Promoting online training and having tutoring and mentoring programs helps strengthen human capital.
The leadership of the person responsible for the area is also transcendental. The manager must be prepared to help employees exploit their creativity , maintain motivation and commit to continuous learning . The manager must also promote teamwork and undertake conflict resolution.
Recognizing the importance of human capital also requires that the company work on talent retention and workplace well-being . Establishing a system of recognition and rewards for workers, promoting work-life balance and, of course, guaranteeing all labor rights are measures that serve indirectly to care for and strengthen human capital.
Talent development drives the growth of human capital.
depreciation
It cannot be omitted to mention that, just as human capital can be developed and enhanced, it is also susceptible to depreciation . This occurs when there is attrition and skills become obsolete.
From a strictly functional perspective, the aging of people is related to a decline in strength, speed and other physical abilities. Of course, this has a greater impact on certain activities. Furthermore, the passage of time also brings experience , which can compensate for physical decline .
On the other hand, there are knowledge and skills that lose their value over time . Knowing how to use software that was popular ten years ago but is no longer used today is a quality that is useless. What a decade ago was a human capital asset is currently of no use.
The Ministry of Human Capital in Argentina
In the Argentine Republic , in December 2023 the Ministry of Human Capital was created. This public body of the national State was established by President Javier Milei through a decree of necessity and urgency.
The launch of this ministry was part of the state reform promoted by Milei . Upon assuming the presidency, Milei eliminated four ministries: the Ministry of Labor, Employment and Social Security ; the Ministry of Education ; the Ministry of Health ; and the Ministry of Social Development . Its functions were assumed, through various secretariats, directorates and offices, by the Ministry of Human Capital .
In the creation decree, it is established that the Ministry of Human Capital has powers in matters related to work, culture, education and social inclusion. Milei appointed Sandra Pettovello , journalist and graduate in Family Sciences, as head of the organization.
It is interesting to mention that, a few months after its creation, the Ministry of Human Capital was involved in a scandal due to problems in the distribution of food destined for soup kitchens. According to various complaints, the ministry had failed to fulfill its obligation to distribute tons of food that were stored in different warehouses.