There’s No Greater Investment Than Human Capital

Corporate America thrives on competitiveness, one of the key attributes of a capitalist system. The phrase “building a better mousetrap” refers to the public and private sector’s relentless pursuit of providing consumers with a more desirable choice in a particular product or service than the competition. Producing goods and services faster, cheaper, and with higher quality takes a concerted effort, typically dependent on a significant investment contributed to the operational budgets of planning, production, and research and development (R&D).

As noted in positive balance sheets and market share data, the concerted effort to produce the best option for goods and services can, and does, pay off for companies every day. Yet how many of these same organizations can honestly boast of a similar strategic investment in human capital? Just because investing in personnel is often measured in the abstract doesn’t mean the economic value isn’t readily present. In fact, along with a majority of experts, we maintain that there’s no greater investment than human capital.

What It Is

Qualities associated with investing in human capital include technical/workplace training, leadership development programs, continuing education, and desirable health and wellness benefits. While the outcome is often measured according to individuals, the value is collective—proven to impact both the productivity and profitability of a company.

They Said It

You don’t have too look far to hear some of the brightest business minds speak to the value of investing in human capital. Finance guru Dave Bookbinder states, “The value of a business is a function of how well the financial capital and intellectual capital are managed by human capital. You’d better get the human capital part right.” And noted industrial-organizational expert Rob Silzer adds, “Financial Resources may be the lifeblood of a company, but human resources are the brains.”

Why Now?

The post-pandemic landscape of industry and commerce has left no organization untouched. Alarming trends such as the “Great Resignation” are indicative of Corporate America’s increasing brain drain. Companies are awakening to an abrupt shift in the employee vs. employer dynamic and confronting the reality of a widely disaffected workforce. The sheer number of workers who report feeling undervalued, unappreciated, and overburdened is proof positive that Corporate America’s investment in human capital remains woefully inadequate.

A right-sized strategic investment in human capital is not only beneficial to employees, but organizations as a whole. The kind of business leadership coaching provided by Intelligent Leadership Executive Coaching can shore up three critical weaknesses seen in today’s organizations:

  1. Vulnerability – unforeseen circumstances due to rapid shifts in business models
  2. Corporate Culture – many companies state it, but far fewer can claim it
  3. Succession – as experienced leaders age out, the untrained move up

Intelligent Leadership Executive Coaching (ILEC) is the world’s #1 executive coaching platform dedicated to growing tomorrow’s leaders today. Our master certified ILEC coaches utilize a proven blueprint and philosophy designed to highlight the long-term benefits of investing in human capital. Don’t wait until it’s too late to discover that there’s no greater strategic investment.

Back to blog