When it comes to human capital the idea remains quite the same, only the human factor enhances the scenario. You are probably thinking if this is the introduction to some kind of riddle or not, and that is why providing a suitable definition and little explanation with that becomes kind of mandatory.

The definition

There are various types of definitions available regarding the term human capital, but all of them ultimately bring up one common thing which is known as human skill. Basically the capital of a human, apart from the money or property he/she already owns, is the special set of skill he/she has and its economic value. These are the qualities that a person is born with or acquires with time. These skills help a person to earn money and prosper more and more. If someone can put a lot of labor, it has its own value that can be measured with money. Along with that, the various skills like singing, painting, dancing, playing ability and many others have their own monetary value and that is the capital of the said person who has the ability or abilities.

Significance of the capital

Apart from afore mentioned skills there are loads of other skills in a human being that can be made use of. Some of the skills are stable, but some are there which are dynamic, and that is why they can be enhanced. These set of skills can be taken to the next level with regular practice and consistency. So, various services like schooling, computer courses, learning about good values, medical care can also be taken as human capital training. You may have the question, why these things are being taken as capital, and the answer is these services and learning’s actually help to enhance the skills. Not only that, they help to earn more and keep people healthy, this way all these said factors together help people to enjoy the benefits of the skills for a longer period of time.

A practical approach

Just like the any other types of capitals, you can invest the human capital. Are all these seemingly contradictory statements are con fusing you? If they are, then you need to take the things slowly and in the easier way. By doing this you will be able to deal with the matter better and will be able to understand the structure properly. If you do not understand the general version, then customize it, because you have to understand it in order to prosper and be better than before. So, proper understanding is important. When you are doing a job you are investing your skills and earning your livelihood. When you are writing something or painting something for the commercial purpose, you are using your skills to make sure you get the return from them. So, you are investing your human capital. Yes, you can create things or write things for passing the time, without any business agenda, but it is undeniable that they have their values alright.

Author's Bio: 

PennCLO offers an Education Training Program that provides skills in the area of Human Capital Development and Human Capital Management.