What is HCI?
Human capital investment is the amount invested in improving an individual’s skills working in a firm to make them more productive. Education has proven to be one of the most important types of human capital investment. The concept of human capital investment is mainly investment done by a firm or an individual on education/training and to expect a return of that investment in terms of revenue/capital. Human capital consists of three main components: ability, earlier education, and knowledge gained by training on job premises. From a company or a firm perspective, human capital is related to the revenue and productivity of that company. In short, we can say that human capital investment is directly proportional to the success and profit of the company.
- Intellectual Capital (Accumulating)
- Social Capital (Linking)
- Emotional Capital (Bonding)
Dimensions of HCI
Intellectual Capital
- Knowledge
- Skills
- Competencies
- Creativity
- Talent
How to invest in Intellectual Capital?
- Educational Programs
- Training
- Mentoring
- Knowledge Sharing
Social Capital
- Trust
- Mutual Understanding
- Shared Values
- Behavior
- Human Network
Emotional Capital
- Feelings
- Beliefs
- Values
- Self-Confidence
- Self-Reliance
- Self-Actualization
- Empathy
- Self-Control
How to Invest in Emotional Capital?
- Treat people as investors: provide recognition and praise regularly.
- Tailor work arrangements to match the changing needs of employees.
- Appeal to employee’s strengths: provide tasks that present creative challenges, clear goals, and a sense of control.
- Recognize people’s need to belong to a group: provide team activities.
- Establish a climate of trust: communicate what’s going on regularly to everybody.
Why Invest in HCI?
- It reduces conflicts.
- Enhance performance of teams.
- Coordinate projects more effectively.
- Reduce attrition.
- Enhancing customer loyalty.
- Increases employee commitments.
- To identify potential leaders.
- Improves competitiveness.