If a company encourages and aspires to carry out human capital development (HCD), employees are seen as valuable assets with quantifiable value that can be increased through specific and measurable management techniques and human capital development solutions.
Almost every company today will state that their employees are their most important and thus valuable asset. In order to adequately develop human capital solutions, employers must continuously invest both time and money in training and recruiting people to fortify their personal and interpersonal skills.
Human capital is considered to be one of the most important elements of company success. The process of developing human capital requires creating the necessary environments in which employees can learn better and apply innovative ideas, acquire new competencies, develop skills, behaviors and attitudes. Therefore, you can state that human capital development revolves around:
The tools for creating these opportunities mostly include training, facilitation, coaching and consulting. The emphasis lies on meeting the needs of learner and organization alike. Some companies use learning management systems to help develop their human capital development.
Companies and brands all over the world are strategically planning and positioning their internal productive resources so they can thrive successfully in the global knowledge economy. The growing importance of knowledge, as opposed to the traditional factors of production, is changing the nature of economic exchange everywhere in the world. The organizations that are able to master the production of knowledge and its conversion to tradable goods and services are topping the charts of economic growth and success.
But the knowledge economy is also related to human capital development. Simply because human beings are knowledge carriers. As human capital can be defined as an engine for business growth, the success of any company depends on its ability to develop, organize and use its human capital.