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Human Capital, The Real Money Maker

If your business is suffering you may want to consider investing in your human capital. Human capital is that intangible but extremely valuable business resource that comprises of your team’s respectful assets. Your organization directly benefits from the skills, talent, education, experience, knowledge, contacts and abilities that you and your team possess. These vaguely quantifiable aspects hold true value and have a definite impact on your business performance.

Billionaire and business magnate Sir Richard Branson believes that the most significant asset in any business is their human capital so investing directly into it is imperative. In fact, it’s his belief that “Businesses should be moving away from a focus solely on maximizing profits and profitability. Instead, they should be focusing on how we can help people reach their highest potential and purpose – which will naturally have a positive impact on the bottom line.”

Now that we know what human capital is and received a billionaire’s advice to treat it like your company’s most important asset, what are some effective ways we can start developing it?

1) Make Human Capital a Priority

According to Entrepreneur magazine “A company’s human capital costs can account for a large portion of its overall operating expenses. However, most companies admit that they don’t do enough investing in their employees, through career development opportunities, skill enhancement training, or otherwise.” Most businesses will take their human capital for granted. They assume that they have hired a qualified individual, hence that individual should always perform optimally. However, that’s like owning a car without investing in servicing and repairs and expecting that to perform optimally for years on end. Investing in human capital should be as high a priority as developing your product and marketing your business.

2) Invest in Training

Investing in the development of your staff makes you more money. Training your team in relevant skills that directly correlate to their positions and the organization’s culture is the best way to improve employee engagement. In 2017 Gallup conducted a pole which indicated 85% of the global workforce are disengaged from their work costing companies a loss of about $475 billion annually in the U.S. alone. Meta-analysis from the same study showed that businesses that scored the highest on employee engagement achieved 21% higher levels of profitability. Companies like Goalmachine provide training and coaching specifically for organizations looking to improve their employee engagement and performance. If you’re ready to develop your team, schedule a free Intake Assessment by emailing

3) Invest in the Best Tools and Equipment

Investing in your human capital does not exclusively mean training, it also means ensuring your team has the most effective tools to perform their work and a comfortable environment to perform in. Invest in comfortable furniture, software, air-purification systems, work related equipment and whatever else your staff may need to perform their tasks with ease. Some companies like Bloomberg and Google take this notion a step further by providing free healthy breakfasts and snacks daily and some companies even permit their employees to bring their pets to work. The concept is to make the work environment as comfortable and utilizable as possible. Employees who are at ease in their work space are exponentially more productive.

More and more businesses and organizations are evolving to a more human-centric model and it’s paying off. Employees are happier, making them more productive which in turn helps to expand the bottom line. Also it’s important to note that employees will never care about your business as much as you do so it is important to make their work environment a place where they feel inspired and engaged in order to draw out their highest performance.

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