The importance of human capital

January 12, 2022 12:00 PM

The importance of human capital

Human capital “is the set of aptitudes, talents, qualifications, and experiences accumulated by a person, which partly determines their capacity to work or produce for themselves or others.” Wikipedia.

From the above definition, we understand that human capital is critical to an individual’s economic and social success. Our path is determined by education, the main role of which is to create human capital that will support us for our entire lives. Indeed, the better educated we are, the better our social approach and understanding, and the more successful our professional career. What’s more, human capital will be increasingly important in the future, as globalisation continues to put a premium on technological skills and flexibility.

The knowledge economy is gradually becoming as important a requirement as globalisation with its accompanying pressures. As a result, the value of personally acquired knowledge and the accompanying practical information is becoming a matter of course, especially in economically developed countries. Consequently, the technological means of disseminating information constantly reinforces the system of material acquisition, placing the knowledge haves above the have-nots. This further widens the social gap, which is essential to take into account if you want to climb the socio-economic ladder.

In addition, competition in the job market makes some people believe — rightly or wrongly — that following interview, employers don’t hire them because other candidates are willing to accept lower wages. Others think that they were not judged according to their skills or given an equal opportunity. Prejudice and discrimination are supposedly the cause of their failure to be hired. Having said that, everyone agrees that a lack of education can be a major obstacle to the most socially and economically rewarding jobs.

Lack of money alone does not define poverty. The poverty process does not begin with a lack of financial capital, it originates and persists due to a lack of human capital. Indeed, economic poverty is fundamentally tied to a lack of knowledge and interpersonal resources, which inevitably leads to failure. In order for success to develop fully, it must contain all the necessary ingredients. Knowledge is precisely one of those key ingredients. Increasing your knowledge base in order to learn more easily and sustainably is the first step to success. This education will set the groundwork for your remaining social activity. If, on the other hand, you keep your distance from the rest of society due to a lack of interest in improving your knowledge, you will unfortunately not be able to fully participate in the global economy and not benefit from all the advantages it has to offer.

Giving yourself the right to access knowledge and its related skills — and not waiting for someone to give it to you — will make you more competitive on the job market; or if you are already there, it will allow you to stay there, no matter what your level of education is. What we must fundamentally understand is that globalisation has completely redistributed the social cards. Today, anyone can accomplish what once seemed inaccessible and illegitimate.

In this chapter, I will show you that there are no walls between you and your life goals. I will especially help you to reveal the character traits that are already hidden inside you, ready to be awakened.