For over three hundred years economists have been interested in valuing the productive capacity of the workers in an economy.
Our own Office of National Statistics the ONS agrees with the Organisation for Economic Co-operation and Development the OECD’s definition of Human Capital. That being: “the knowledge, skills, competencies and attributes embodied in individuals that facilitate the creation of personal, social and economic well-being.” What a mouthful that is….
But here is the point, the ONS valued the Human Capital in the UK at £17.12 trillion in 2010. That is more than two-and-a-half times the UK National Accounts estimated value of the UK’s tangible assets – buildings, vehicles, plant and machinery etc – at the beginning of 2010.
I would wager that far more money is invested in managing buildings, vehicles, plant and machinery than people. Surely it is about time that more organisations invested in Workforce Management systems so that they can make the most of their most valuable asset, their human capital?
I am always happy to debate how to match labour to demand, measure and improve productivity, highlight and remove constraints and turn your human capital to competitive advantage.