HUMAN CAPITAL CREATION: AN IMPERATIVE OF OUR TIMES

Abstract

India has a rapidly growing population of over 1.27 Billion. As 65% Indians are under the age of 35 years, we can say that it is a young population. While this youthful population is a great advantage to India, its value can only be realized if the population is converted into Human Capital. Thus Human Capital creation is of great significance to India. It is important to understand what really human capital is and what can be done to increase it. This paper explores the concept of human capital taking a holistic economic view of how human beings function in the economy. Human capital maybe of three types: knowledge capital, social capital and emotional capital. Human capital is an intangible asset stemming from an individual’s talent and experience. It isn’t a tangible asset you can quantify on a balance sheet and yet it adds economic value to a company .In fact, a company is what it is because of its employees. Individuals who make up a company’s workforce are responsible for its success or failure. If an organization employs people who have more education, more developed skills, and more work experience, it will be able to accomplish much more, but if it can help its existing employees to exhibit their highest potential by uncovering their talent, honing their skills and nurturing their positivity, the company will have hit a goldmine! A company often makes the mistake of assuming that the way it can  increase human capital is to hire more people but actually it is equally if not more important to focus on the  existing workforce. This paper explores the strategies that a company can use to increase the human capital and create, preserve and enhance it’s Human Capital.