Human capital is the term for the collective capability, knowledge and skills of the people that are employed by an organisation. In an increasingly complex knowledge-based economy, the measurement of human capital provides a data-driven approach to identifying people management practices, which, if done well, can help ensure investment is more strategic and even secure greater investment.

This factsheet explores the challenges surrounding the measurement of human capital and the three clear levels of data collection and analysis for human capital data. It introduces the different types of reporting suited to various stakeholders, including external reporting, narrative reporting and internal reporting.

CIPD viewpoint

What is human capital?

Measuring human capital

Reporting human capital

References

Useful contacts and further reading

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