This factsheet was last updated in July 2016.
What is human capital?
The term 'human capital' is widely used in HR to describe people at work and their collective knowledge, skills, abilities and capacity to develop and innovate. Human capital reporting aims to provide quantitative, as well as qualitative, data on a range of measures (such as labour turnover or employee engagement levels) to help identify which sort of HR or management interventions will drive business performance.
It is now commonly accepted that the value of organisations is drawn from a mixture of tangible assets in the form of equipment, money, land or other physical objects together with intangibles in the form of brand, reputation, knowledge and, of course, people – critically important in an increasingly knowledge-based economy.
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- What is human capital?
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