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Great Companies See Employees as Investments Not Human Capital

Book Description

This Element is an excerpt from 17 Rules Successful Companies Use to Attract and Keep Top Talent: Why Engaged Employees Are Your Greatest Sustainable Advantage (9780137146703) by David Russo. Available in print and digital formats.

What “human capital” really means--and why understanding it properly can help you unlock immense competitive advantage.

There is a widely held notion among many leaders and managers, and particularly CFOs, that “human capital” is “the employees,” the physical presence of those people who companies recruit, hire, and pay. Sorry, but that’s wrong! It couldn’t be more wrong, and the mindset that breeds this misconception is at the root of what troubles many organizations today...