The Importance of “Human Capital” in Financial Planning
For a company or organization , “ Human Capital” is a measure of the skills, education, capacity and attributes of labour which influence their productive capacity and earning potential. According to the OECD , human capital is defined as: “The knowledge, skills, competencies and other attributes embodied in individuals or groups of individuals acquired during their life and used to produce goods, services or ideas in the market circumstances”. The human capital of the economy – The aggregate human capital of an economy, which will be determined by national educational standards
