 john fahad | How is human capital measured? What other types of capital are there?One of the most important concepts in economics is that of capital. It is one of the four factors of production and is added in this group to land, work, and technology. Capital is resources, where people also enter, but also goods and instruments that are used to create value through the manufacture of goods and services.Capital aims to generate profits or interest in exchange for carrying out a productive activity or offering a financial instrument in which to invest money. With capital, including Human Capital, more value is generated and Best Essay Writing Services.What types of capital are there?Capital can be classified around different criteria. Thus, according to the owner of the same one speaks of public and private capital. The first refers to the one that belongs to governments or states. Public roads, for example, are the capital of this type. On the other hand, the private is the one that belongs to individuals, companies, or organizations.Communist economic theory speaks of the socialization of the means of production, that is, that the means of production belong to governments or states having a public character, but it does not limit this property to consumer goods.Another formula is to speak of tangible and intangible capital. The tangible is the physical capital, you can see and touch, such as a fruit plantation. The intangible is the opposite, a brand, a logo. That cannot be touched, although it can be given value.The heart of the matter is to classify capital according to its function. Here we can talk about natural, social, human, and financial capital. The natural refers to the flows of energy and matter that end up producing goods and services.This term includes resources, processes, and sinks. Processes regulate resources and sinks. This last concept refers to those means that absorb, neutralize or recycle the resources derived from the resources, which are precisely those flows of energy and matter. They can be renewable or non-renewable.Natural capital is the basis of the productive economy, but it requires the participation of human capital, which brings together the knowledge, skills, and motivation of people, as well as their health. Without human capital, the production process is impossible, and Buy Essay Online.Human capital is fed through educational processes. These are driven by social capital, families, organizations, and institutions: unions, companies, schools ... that weave these relationships of coexistence between people.Finally, we must not forget financial capital, which is the most controversial of all, since it is not based on a real value, but stocks, bonds, or bills. It is subject to speculation processes and economically represents the rest of the capital.How is human capital measured?There are many formulas for measuring human capital, either in the purely business sphere or by transferring this idea to the development of a country or a certain territory. We propose some very useful indicators to check the validity and the degree of satisfaction of the employees in a company but that can be directed towards other areas.The personal turnover rate, for example, shows how satisfied and motivated a company's workforce is. As long as this ratio is less than 5%, the most notable consequence is that the organization takes care of its employees.On the contrary, if the turnover is very high, something is not working well and new systems must be introduced to recruit employees, improve their training and introduce them through good motivation, greater commitment, and a feeling of belonging.Avoid loss of talentTalent retention is another one of those key indicators. Many companies fail at this point due to their inability to offer a good counterpart to the human capital they have. If we broaden the focus and do not focus solely on the corporate sphere, a clear consequence of the lack of talent retention is how brain drain affects certain territories.Spain is a clear example of this reality since there are thousands of highly trained professionals who do not find the opportunity to continue growing in the professional field and have to meet their expectations abroad. It is seen in scenarios such as health, nursing, new technologies, engineering, or computer science.At the same time, going to the closest territorial level, the large population cities, especially Madrid and Barcelona, act as nuclei that attract the talent generated in other territories, leaving those spaces more abandoned and without the possibility of local development and Cheap Resume Writing Services.A final indicator that helps to understand the relevance of human capital is absenteeism. This parameter not only reflects data that is obvious, the more absenteeism, the less possibility of gaining in productivity, but it opens a deeper scenario about the motivation of the employee, their commitment to work, and the growth of the company and essay. Human capital, of which intellectual capital is also formed, is a differentiating factor for the growth of a company or a territory, an aspect that must be taken care of as much as possible to achieve success in today's markets. |
