What is the human capital model based on?
To understand the essence of the model, it is necessary to begin by clarifying what is meant by "human capital". Although there is no single concrete definition, it is safe to say that human capital refers to a set of qualities (such as intelligence, reliability, commitment), capabilities (for example, imagination, the ability to draw conclusions, the propensity to innovate) and motivation and knowledge (i.e. the willingness to use knowledge in teamwork to achieve a goal).
What is the human capital model? It is what we call a management approach oriented towards the employee as a lifelong learner with a strong need for self-actualization. For this reason, it is always worth investing in him or her and striving for long-term cooperation. Employees are considered the most valuable asset of an organization.
Advantages of the human capital model
A company that decides to implement such a model gains a team of employees who are very loyal and always committed to the tasks assigned to them. In addition, it minimizes the risk of unhealthy competition, which can spoil the working atmosphere. Specific character traits and behavior are often valued more than professional experience. For this reason, young people who have just started their careers are eager to be hired. They do not have bad habits, which makes the learning of a new employee faster, more efficient and in line with the needs of the company.
The employee has access to courses, training or workshops aimed at improving his or her skills. The company cares about the well-being of the team and therefore supports the development of employees' individual passions. Layoffs are avoided. One of the main features of this model is that it focuses on long-term cooperation. In case of difficulties in performing the assigned tasks, help and support or a possible change of position is offered. A comprehensive package of incentive systems is also not forgotten to further encourage the employee to improve his or her performance.