Invest in your human capital.
As a young adult, your developing skills, education and sociability determine your ability to earn an income.
First, recognize that your human capital represents the present value of all your future wages.
What does it mean to invest in human capital?
noun. the collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or their community: Education is an investment in human capital that pays off in terms of higher productivity.
How can a person invest in their human capital?
A firm can improve its employees’ human capital through continuing education and on-site education. A company could look to invest in educating an employee by offering to pay some or all of his college tuition. This equips the employees with a new skill set and helps to improve human capital.
What are examples of human capital?
There are two kinds of human capital: general and specific. General: this refers to knowledge and skills that several different employers find useful. Examples include expertise in accountancy, marketing, or personnel management.
Why is it important to invest in human capital?
One investment move that is highly important and often overlooked by many companies is the importance of investing in a company’s largest assets -their people! The advantages of investing in human capital not only include increased associate productivity, but also increased loyalty.