Watch this brief video which introduces the value of human capital. While many organizations have a strategy for developing and nurturing their leaders, they also need to create strategies to manage their employees.
Dan Springer discusses an income statement—a financial statement that illustrates the revenue and expenses a business incurs during a specific period. Business should monitor the income and losses recorded on this statement on a daily basis to ensure the business is profitable. A balance sheet is a financial statement that illustrates the business's assets, liabilities, and owner's equity.
Businesses need to focus on increasing the value of their assets. When managing human capital, certain C–jobs and C–employees, and even certain B–jobs and B–employees, have the greatest impact on your income statement. The daily functions these employees perform to help an organization meet its goals and objectives are most often the most important. The A–jobs and employees are those with a high degree of risk (asset or liability), which makes their impact on the organization more strategic in nature.