Human capital theory

Human capital is defined as comprising the knowledge, skills, competencies and attributes embodied in individuals that facilitate the creation of personal, social and economic wellbeing (Healy and Côté, 2001). Human Capital Theory states that the knowledge, experience and skills of employees are developed through processes of advanced education, training and development and job changes (Tharenou, 1997). Human capital acquisition through learning and job satisfaction increases the ability of a workforce to perform effectively (Michael et al., 2000; Shaw et al., 2005; Tomer, 1998). Thus, nurturing human capital is fundamental to the successful placement of manpower in private sector jobs.