THE crucial importance of investment in human capital is becoming increasingly recognised in most countries, hence there is continuous attention and focus in this regard. This is a logical and inevitable outcome in today’s world of rapid scientific and technological changes and advancement. Therefore, having an ill-equipped workforce to meet the current socio-economic challenges will be most disadvantageous to production and productivity and being able to maintain a competitive edge which is a necessity rather than an option.

Doreen Mcgunagle in her article: “The Advantages of Investing In Human Capital”, revealed that a 1998 survey of 12 developed nations indicated that investment in human capital accounted for at least 10 percent of national income in most countries. This included public and private expenditures on initial education as well as spending on training after school. Policy issues related to such a level of expenditure include what volume of spending would be appropriate; how resources should be allocated among different types of human capital investments; and what part of the cost should be borne by companies, individuals, and government agencies.
She adds: “One thing is for certain, and that is that the increasingly high level of competition in the global marketplace is causing more and more companies to take a second look at their personnel resources. This positive development bodes well for the future, as more of these businesses commit both their time and money to investing in human capital that holds the key to their future success.”
With access to capital and technology tending to level the playing field between companies, human capital has become essential to sustaining a competitive advantage. In order to gain the most from investments in human capital, and in recognition of the importance of people processes, companies are linking individual behaviour with corporate goals. The strategic approach to human capital focuses on processes such as dialogue and discussion. Strategies to develop human capital within an organisation also focus on the future and take a long-term approach.
On this note, the Labour Ministry’s National Training Project for Youth Empowerment (NTPYE) and Single Parent programmes sponsored by the Board of Industrial Training (BIT) is an excellent initiative.
What is notable about these training programmes is that they are equipping individuals with marketable skills rather than training for the sake of training and are targeting those who are in dire need of empowerment.
President Donald Ramotar in his address to the recent Region 4 BIT graduation made some very pertinent observations.
“The quality of people (in terms of training) determines how developed a country becomes,” Mr Ramotar declared.
In supporting his contention, he correctly pointed to China and Japan, which have been designated the second and third most successful economies in the world. He said those designations were secured via massive investments in human capital over the last three decades. “These programmes are extremely important,” he stressed.
However, it would be useful for the Ministry of Education to review our education system to determine whether it is producing graduates who are really prepared for the world of work, as many companies have been expressing concern in this respect.