• Human capital is an intangible asset that is not listed on the company’s balance sheet.

  • They say that human capital includes such qualities as the experience and skills of an employee.
  • Because not all workers are considered equal, employers can improve human capital by investing in the training, education, and benefits of their employees.
  • It is believed that human capital is associated with economic growth, productivity and profitability.
  • Like any other asset, human capital tends to depreciate due to long periods of unemployment and inability to keep up with technology and innovation.