We may think of "Human Resources" as a department within an organization, or as measurable labor performed by an individual. Many of us are not familiar with the term "Human Capital" at all; still others are confused by its meaning.
The significance of the myriad contributions made by human beings, whether called human resources or human capital, reaches far beyond any boardroom. What and how individuals contribute is critical to the growth and advancement of any given society and to mankind, in general.
What is the difference between "Human Resources" and "Human Capital"? Perhaps the simplest explanation can be found in one of the resources we commonly rely on to gather information - the dictionary
"Resources" have been defined as "The total means available for economic and political development, such as mineral wealth, labor force and armaments. An available supply that can be drawn on when needed.
"Capital" is defined as "Any form of wealth employed or capable of being employed in the production of more wealth."
Simply put, by definition, resources are finite. We can strip coal, gold and iron mines until the supply is exhausted. Capital can be infinite, as it can be used to produce more and more capital.
Few can argue that capital makes the world go ‘round. We rely upon the powerful performance of financial capital, technological capital and human capital to keep it spinning.