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Why Should Businesses Invest In Human Capital?

All businesses are made up of three basic economic resources – land, labour, capital. Land is the physical resource that is used to produce the goods or services,; labour refers to the manpower required to transform resources into consumer products; capital refers to the money that can be used to purchase land and labour. From this equation, increasing any of the three factors can potentially lead to business growth. Hence, developing human labour has become an important ingredient in promoting business growth.


Businesses invest in employee training to improve business operations, working towards waste reduction and increasing overall employee efficiency. Companies have their own cost-benefit analysis that analyses the total cost of improving their employees output against their returns of investment.


Human capital investment essentially embeds training and education. Education provides the technical knowledge; while training often refers to onsite training by supervisors or the management of the organisation, showing employees the standards of procedure for the different operation.



Why do we invest in human capital?


Training and education that are in place can help to improve human labour, helping organisation to gain a competitive advantage and to the employees to stay relevant in the fast-changing business landscape. Human Resource department should also create a standard training and development framework to ensure that every employee in the organisation receive equivalent training.


Having skilled labour accomplishes tasks quicker and more efficiently than unskilled labour. Employees who are skilled have specific expertise in their respective functions, increasing their value in the organisation.


Opus Kinetic believes that people are why organisations are successful, and giving people the knowledge to perform well at their job is integral for success. We pride ourselves as the premier provider of knowledge, offering acclaimed in-house trainings, and many others professional training courses spanning from various industries. Our training courses are well researched and updated with the latest industry trends. For more information on our professional training programs, you can visit us at

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