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Human Capital
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63 Examples of Human Capital

Human capital is the future productive potential of people. This is difficult to directly estimate and is often measured with proxies such as education and health metrics for a nation. Unlike regular capital such as a building or machine, humans are extremely dynamic and can create or destroy unusual levels of value. The following are factors that contribute to human capital.
Administrative Capabilities
Agents of Change
Artistic Talent
Attention to Detail
Capacity for Calculated Risk Taking
Capacity for Problem Solving
Communication Skills
Convergent Thinking
Creative Capacity
Creative Visionaries
Cultural Capital
Cultural Competence
Culture Visionaries
Design Thinking
Divergent Thinking
Domain Expertise
Emotional Intelligence
Engineering Prowess
Entrepreneurial Spirit
Fluid Intelligence
General Intelligence
Hard Skills
Honesty & Integrity
Industry Experience
Industry Visionaries
Interpersonal Skills
Inventive Thinking
Lifestyle Visionaries
Literary Talent
Management Competencies
Personal Presence
Personal Resilience
Physical Abilities
Political Leadership
Rational Thinking
Relational Capital
Research Abilities
Scientific Knowledge
Scientific Leadership
Situational Knowledge
Soft Skills
Strategic Thinking
Systems Thinking
Technical Leadership
Technical Skills
Traditional Knowledge
Work Ethic
Relational capital is the value of relationships. These are often cultivated and maintained by your employees such that they are likely to leave with the employee. As such, relationships can be considered a type of human capital.
Human capital is a potent way to explain the difference in productivity rates between one country or one firm to the next. Productivity is the amount of value a person creates in an hour, month or year and is the basis for a high standard of living. Workers with talents and knowledge have more productive potential such that governments can invest in things like education, health and quality of life to improve their long term economic production.
Human capital is a useful concept but it is an unfortunate term as people don't like to be compared to other capital such as machines. This can be accused of capitalist realism whereby all things human are coldly reduced to financial metrics. The potential of a human is a wondrous thing that is beyond measurement.
Communist systems waste human capital at great scale by allowing the state to direct all capital. For example, a talented entrepreneur can't emerge in an environment where the state and its associated companies control all economic resources.
It is ridiculous to think that firms can measure human capital in terms of investments in training. The talent of your employees will not change much with a training session. It is the firms with that capacity to recruit unusually talented individuals that have a human capital advantage, not those that conduct the most training sessions.
Working conditions and quality of life improve human capital. For example, employees who are struggling with a lack of healthcare aren't likely to be productive.
Public services such as schools, universities, hospitals and transportation are a primary way for nations to increase human capital. If people can get a low cost, high quality education -- this is fundamentally going to increase human capital.

Human Capital

This is the complete list of articles we have written about human capital.
Decision Making
Employee Management
Human Capital
Quality Of Life
Root Cause
Social Capital
Social Status
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