The theory of human capital states that knowledge, education, and training have economic value. This human capital is dynamic – expanding and contracting over time, so productivity valued today has a different value tomorrow.
I didn’t approach human capital from a theoretical perspective but from studying the productivity of people with developmental disabilities whose lives were at risk in institutions. Evidence from our research was used to expand their rights to live in communities.
In our productivity studies, my colleagues and me found that productivity constantly improved when:
When everyone contributes to a positive culture where at least 80% of the conversations are positive recognition of contributions
There is mutual respect, openness, support and caring.
And, where employees have the freedom to care for their work and each other – this is social wellbeing or social capital.