Human capital is all about the individual

Stephen Overell is right to highlight the familiar problem that people are seen as assets with legs (Personnel Today, 5 July).

But what he refers to as ‘the 1960s version’ of human capital management (HCM), where human capital belonged to the individual, is not dead.

In fact, this idea is still key to HCM and skills management, as dealt with by the very best HR departments. They develop individuals, in line with corporate goals, as part of an honest, grown-up contract between employer and employee.

As Overell rightly points out, companies with poor HR policies, which try to exploit human capital as another asset to be ‘sweated’, only encourage that capital to leave the organisation.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

Email(Required)

OptOut

From time to time, we will send you emails about selected products, events and services from Personnel Today and OHW+ - but you can choose to opt-out at any time. If you do not wish to receive these emails, please tick this box.

Email

This field is for validation purposes and should be left unchanged.

Δ

The right approach to development not only results in employees who are better skilled, they are also better motivated and more loyal. And that pays dividends.

Donald Taylor
Strategic alliances director, InfoBasis