Capital is capital - you spend something now, in hopes of getting a return on your investment later. Many companies have come to recognize their investment in human capital may be the most important investment they will ever make. When it comes to human capital, you are investing in people and the "return" you receive most likely is much more than financial gain. You may also gain knowledge, a larger group of contacts, more productivity, increased happiness and security.
n this competitive world marketplace, the likes of which we have never seen before, it is crucial that Human Resource professionals recognize the importance of investing in human capital. Experts agree that it costs much less to retain an existing employee than to recruit a new one.