One of the distinctive features of 21st-century management is the new understanding of human resources within companies. The formation of professional skills and competencies, their development and application in the workplace are approached as an investment.
Although human capital possesses some universal characteristics similar to economic capital, such as the ability to regenerate and accumulate, there are significant differences between them. Notably, human capital is tied to a specific individual and cannot be separated from that person.
Is it worth investing in people when we cannot be sure that the benefits from such investments will directly accrue to our company? Is there an economic rationale behind these investments?
The cold facts suggest that there is.
Research results from IBM indicate that employees who do not feel they are developing within a company are 12 times more likely to leave that job.
Companies that prioritize employee development have an average revenue of $169,100 per employee, while other companies only generate $82,800—approximately half.
According to HR Magazine, companies that invest $1,500 in training per employee typically see a 24% higher profit compared to those that do not invest or invest less.
