THE IMPORTANCE OF HUMAN CAPITAL

Often in business we hear key phrases such as P&L, EBIT & Share Capital when describing the performance or value of a business, but how often do we hear the phrase, Human Capital?                                            

Without people, staff, teams, managers etc there would be no business and yet we do not often hear the value or performance of business referred to by the value of Human Capital. 

An example of people power within business was the recent announcement of Tesco’s Chief Executive retirement, on this announcement the value of the company’s shares was dramatically reduced, investors obviously feeling Tesco would not be such a safe bet without Sir Terry Leahy at the helm. 

My point is simple, without people there is no business. 

Matthew Clayton

Ambassador - Chartered Management Institute & Institute of Business Consulting