Human Resources Vs. Human Capital

Have you ever thought about the difference between human resources and human capital? Is there a difference? Absolutely!

I found an interesting description of the differences posted by Hub Pages, “Simply put, by definition, resources are finite. We can strip coal, gold and iron mines until the supply is exhausted. Capital can be infinite, as it can be used to produce more and more capital.” I liked this definition because it is so true. Human resources are the resources that the company can use; whereas, human capital deals with the individuals in the organization, their growth, etc. I, personally, like working with human capital because there is SO much you can do with human capital, such as:

  • Creating programs so that employees can be heard within the organization
  • Boosting employee morale through processes and programs
  • Setting employees up for success by helping them improve so they can be advanced within the company
  • Providing training for employees in areas that they are familiar
  • Helping employees learn how to have a proper work-life balance

These are just a few…they can all come down to less employee turnover, happier employees, higher production, etc. These are all good things for a company!

Does your company focus on both human resources and human capital, or just one or the other?

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