Adding Value to the Organization

The term "human capital" is now part of everyday business language. It represents the sum of a workforce's skills, knowledge, and experience, and is now seen as a critical source of value for a company, when managed properly. No longer considered the sole province of the human resources function, managing human capital is now a collaboration increasingly shared by all an organization's leaders. Before getting into how Human Resources Management (HRM) adds value to a …

…be contained, many are coming to see human capital as a source of value and competitive advantage. And as finance executives come to recognize human capital's importance, they are starting to search for ways to measure and manage this asset more effectively. To ensure that an organization's human capital strategy will maximize the value of the people who will achieve its business goals, leadership must encourage and support collaboration between the HR and finance functions