Question

The most important investment you can make is in your human capital

Answer 1

TRUE.

Explanation: Human capital is by far the most important asset for a company and in the long run a company will stand to gain and benefit a lot by investing in its human capital. In economic terms human capital is the measure of economic value provided by employees of a company and this value is provided by employees on the basis of their abilities, their skills and their knowledge.

As such companies spend on their human capital development with an objective of generating incremental economic value. Other benefits of investing in human capital are that it increases employee satisfaction, it improves retention rates, it enhances engagement level of the employees, and it improves return on investment (ROI) for the company.