HR Glossary

What is Human Capital?

The economic value of an employee's skills, knowledge, experience, and abilities. Unlike physical assets that depreciate, human capital can appreciate over time through investment in training, education, and development.

Why it matters in hiring

Human Capital comes up whenever teams compare candidates, set policy or report on people data. Getting the definition right keeps decisions consistent, which is the same reason springhire scores every applicant against the same criteria rather than on impression.

Related terms starting with H

• HR Analytics
• HR Audit
• HR Compliance
• HRIS (Human Resource Information System)
• Human Capital Management (HCM)
• Hybrid Work
• High-Potential (HiPo) Employee
• Half Day Leave

Part of the springhire HR glossary, 1,150+ HR, payroll and recruiting terms defined. Free, no signup.