When you hear the term capital in business you most likely think of money, shares, inventory, etc., all of which you are trying to either increase in quantity (cash) or increase in value (inventory, shares). As leaders of businesses we commit our days to this task for ourselves and our shareholders.
How often do you think about the value of increasing your Human Capital? (Capitalized on purpose) The act of investing in the education, training or skillsets of your workforce? Employees are referred to as Human Capital because they cannot be separated from their knowledge, morals and know-how the way people can from their physical assets. I’ve always admired businesses that send their employees to receive further education. They get it. It is way cheaper for us to help this person gain Human Capital through education, then it would be for us to go hire an entirely new person who may already possess this skillset. You win not just in the gained education that can be applied to your business, but in the loyalty of that employee long-term because you cared about their mind or their heart.
Investing in people as a leader is your job, and making sure you get the greatest return on that investment is also your job. If I told you there was a way to increase the value of your capital tomorrow, you would immediately ask me, “How?”
Why are we not so desperate to do the same when it comes to the Human Capital that shows up everyday for us in our building? Your capital is only as strong as the people working to increase its value.