human capital is defined by Wikipedia as the stock of knowledge, habits, social and personality attributes, including creativity, embodied in the ability to perform labor so as to produce economic value. The key word to focus on is “stock.” I go back to a lesson that was taught to me at a young age. The lesson went like this:
The Importance of Human Capital
Human capital is important because it is what separates us from others. Ask yourself, “What am I doing that my competition is not?” For most people, the competition consists of anybody that wants to do the same job you are doing. “What am I doing that differentiates myself from them?” is a question you need to ask yourself frequently.
Human capital is extremely important in the development of your career. See the FitBUX Article titled Keep Developing Human Capital for an example. Another example is provided to us by CFO magazine. They recently highlighted an AICPA Survey in their October 2015 issue. In the survey, they state that only 12% of respondents had no difficulty hiring good candidates. This is another way of saying candidates didn’t have the necessary skills. In short, their human capital development was lacking.
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