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Both human resources and human capital strategies emphasize the importance of team members to the success of an organization—and both leverage HR tech to improve performance and track important data.
However, each concept approaches people management from a different perspective and focuses on separate tasks and goals.
Human capital vs human resources
Human capital management takes a strategic and financially based approach to hiring and developing the workforce. In contrast, the traditional role of human resources focuses on HR operations like enforcing health and safety regulations, creating onboarding materials, and selecting applicants for open roles.
Let’s take a look at the differences between human capital and human resources.
What is human capital?
Human capital management considers team members through the lens of the skills, knowledge, experience, and monetary value of the organization each person represents. It views team members as assets and acknowledges the importance of developing each person’s skills, experience, and abilities to drive organizational success.
Teams invest in skill development and performance management to ensure every team member can contribute to organizational goals. This approach plans strategically for future skill needs and team development gaps.
While human resources workflows differ from human capital management strategies, they work together
