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Seb Anthony

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Human Capital Measurement – What’s The Fuss?


Hi All,

Below are some thoughts about human capital management. I post them for a couple of reasons:

1 - To elicit a response from other members, and to survey such responses;

2 - To elicit comments on the final thought/question about relative levels of activity in looking at measurement of human capital in general management/stock market vs the HR profession.

Answers on a post card please ... and I shall be glad to summarise and present back.

Here goes...


Human Capital Measurement – What’s The Big Fuss All About?

Why is there such a fuss at the moment about measuring human capital? Who wants to do this and why? Does it matter if it’s not done? In what ways and to whom? What is the current state of the art, and is this sufficient for the moment?

So many questions, all of them critical in the context of deciding whether this fuss is worth looking in to and doing something about. I mean, measuring human capital may only really be the interest of an HR profession desperately looking to legitimise itself in the eyes of senior management and shareholders. Or it could be a concerted effort by general business managers and shareholders to usefully define the value added to or taken away from a business by virtue of the people that work for it, the knowledge they have, the way they behave towards themselves, customers, shareholder interests, equipment, safety, health, environment, community, management, processes, policies and the future – theirs and others.

Perhaps it might help to start with some digging – is the domain of general management and the stock market as active about measuring human capital as the HR profession seems to be?


Many thanks


Martin Schmalenbach

Martin Schmalenbach


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