An Exploratory Study On Human Capital Investments

Abstract

Human capital is a valuable resource; it pulls the other factors of production and gives strategic foresight to every corporation and nation. It plays an integral part in the value creation process of modern corporations and economies. Thus, several studies have been carried out to ascertain the link between investments on human resource on the performance of the micro and macro economy. This paper sets to explore available literature and synthesize the ideas and positions there-in to take an informed position on the categorization of human capital investments. To achieve this, the study adopted a desk research approach and reviewed several related conceptual postulations, theories and empirical studies on the subject to lay credence to take an informed position. The findings revealed that there is a huge link between economic theory and empirical findings on the vital role human capital investments play in enhancing corporate growth and employee earnings. The major area of deviation is on the valuation of the returns on investment on resource; which is still evolving. Specifically, the study found a proportionate link between investments on training, education, staffing, health, etc. on the performance of corporations and the benefits it tilt to the economy. On this premise, the study concludes that human capital is an investment and therefore should be categorized as a type of investment that is an invaluable component in the production process of a corporation and nation.

Factors Influencing Investments into Human Resources to Support Company Performance

“…Human capital could be defined as an individual's core and unique ability in an organization or economy's entrepreneurial or other processes. Human capital (in entrepreneurial practice use), based on definitions, could be seen as the combination of intellect, skills, experiences, talent, and the artistic ability of an employee, which is directed to produce value-added to product or service (Bruce-Lockhart 2016;Markjackson and Innocent 2020;Sawulski and Paczos 2021).…”