Every business, no matter big or small, commercial or charitable, essentially needs three types of economic resources for carrying out its activities. These three economic resources are land, labor and capital. While land and capital comprise the physical or should we say monetary factor required for enabling business activities, it is the labor or the human resource that creates value for the prospective consumers/clients of the business. Both land and capital require human resources for their proper usage, thereby enabling worthy and economically vibrant business environment. Thus, it is pertinent for every business organization to take steps in order to ensure 100% output from the human resource available to them.

There is all likelihood that human resources available to an organization are not perfect or need some improvement in order to give their best and this is where the concept of human capital investment takes precedence. Simply put, human capital investment is the process used by business organizations to develop and improve their human asset or the employees working for their organization. For simplification purposes, human capital investment is divided into two broad categories namely training and education. As the names suggest, training is concerned with the task of making employees aware of a particular task and improving their technical skills while education relates to overall development of the employee without focusing on any particular technicalities.

During the process of human capital investment, enterprises go on investing huge chunks of money in employee training, development and education, thereby reducing wastage of resources by employees and improved output that ultimately results into huge cost benefits to the business enterprises.  Human capital training and education play a major role in determining the level of competence of an organization’s human asset, thereby giving an ultimate edge to the organization carrying out this particular task. As this process involves uplifting the human capital of a business organization, it can surely be termed as one of the core activities for business environment.

The very first step of human capital training and education begins with the task of identifying human resources that need enhancement and polishing. The HR department of an enterprise must exercise caution and care in choosing employees that need upliftment and technical education as there may be situations where few employees do not respond the way they should and may put up their resistance to undergo such activities. After making careful analysis of human resources, the HR management should identify areas that need core training and education. Since human capital investment involves outflow of huge money, every business must exercise caution in listing out activities that need emphasis. All these pre-planned analysis and preparation help a great deal in making training and education of employees a success for the concerned organization.

Human capital training and education helps in developing required technical and professional skills in the present and prospective employees of the organization which ultimately makes them produce/deliver goods and services that aren’t being made available by contemporary business enterprises. By charging the business environment with competitive spirit, human capital training and education plays a miraculous role in developing business organizations and environment as a whole.

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