INVESTING IN HUMAN CAPITAL: TRANSFORMATION AND DEVELOPMENT
Abstract
The theoretical basis of the concept of investing in human capital has been studied through the prism of modern realities. The process of investing in human capital is identified as the dominant factor of economic growth in the country. The modern history of formation, the fundamental element of which is the theory of human capital, has been analysed. It has been determined that the new public management should be taken as a basis for the study of investment in human capital. Unlike the classical one, it replaces bureaucracy and hierarchy with flexibility and modularity. It is proved that the theory of investing in human capital has become especially relevant in times of socio-economic changes through the prism of uneven division of labour and limited resources. The value of investing in human capital for both employers and the economy as a whole has been substantiated. It is determined that by investing in education and career development, employers can improve the quality of this capital. The optimal grouping of investments in human capital by the direction of impact and type of investment was formed in the study. Possible directions and methods of implementing human capital investments are indicated, in particular, their connection with the processes of personnel management and integration into the activities of organisations. An alternative mathematical method for assessing and measuring the quality of invested funds through the use of Social Return On Investment was proposed. As part of the study, a special model MIPM (Modern Investment Possibilities Model) was developed to present promising areas of human capital investment that are not currently used. The model combines technology, personal interaction, corporate culture and the prospects for future changes. It is concluded that the combination of the model's elements allows not only to increase the effect of investing in human capital, but also opens up new and promising areas for investing resources to improve team interaction, redistribute areas of role harmonisation, correlate ideas and opportunities, and improve the overall concept of investing in human capital.
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