Quantifying Human Capital

What's Coming and Why It Matters

The global pandemic has not only compelled corporations to rethink physical health and safety but has also highlighted the paramount importance of our human resources with piercing clarity. Consequently, employees' thoughts, feelings, and performance have become central to the evolving workplace culture.

The phenomenon termed the "Great Resignation" exemplifies this shift. In July 2021, the U.S. Bureau of Labor Statistics reported that 4 million Americans quit their jobs. NPR's Andrea Hsu notes, “many are rethinking what work means to them, how they are valued, and how they spend their time.” This trend underscores a global transformation in the valuation of human capital.

Although resignation rates dipped in 2022 and 2023, they surged again in 2024, with nearly 50% of employees contemplating quitting due to dissatisfaction and limited growth opportunities.

This has sparked intense discussions about 'human capital,' defined by Investopedia as the economic value of a worker's experience and skills, including education, training, and health. Investment in human capital is crucial, as it enhances productivity and profitability. Companies that invest in their employees are more likely to succeed.

What’s Coming

The ramifications of this shift are profound, both for the individual and the organization. For too long, the emotional and mental well-being of employees has been relegated to the shadows, invisible yet essential components of the workplace. The advent of these new standards illuminates the critical nature of these factors, offering a beacon of hope for a more humane and empathetic corporate environment.

Employers now face the challenge and opportunity of truly understanding their workforce. Tools measuring employee sentiment and engagement are not just innovations; they are revolutions in how we perceive the work experience. They promise to transform the workplace into a space where every voice is heard, and every emotion is valued. This is not merely a compliance issue—it is a moral imperative, a call to action for companies to embrace a future where success is measured not just in profits but in the well-being of their people.

For employees, this could signal a new era where their experiences and feelings are no longer sidelined but are integral to the organizational narrative. Yet, the journey to this ideal is fraught with challenges. The ingrained culture of silence, the fear of retribution for speaking out, and the deep-seated mistrust of corporate promises must be overcome. It will require courage from employees and a steadfast commitment from employers to foster an environment where genuine dialogue can flourish.

In this evolving landscape, the stakes are high. The accuracy of human capital metrics hinges on the honesty and openness of employee feedback. Missteps in this area could lead to ineffective strategies and wasted resources. However, the potential rewards—a more engaged, productive, and loyal workforce—are immense. The path forward is clear: organizations must prioritize the mental and emotional health of their employees, not as an afterthought, but as a cornerstone of their success.

Why it’s Important

People are living in fear and uncertainty, and this spills over into their professional lives. Corporations are now required to assess the mental and emotional state of their employees in addition to reevaluating productivity standards against a rapidly changing global economy. Implementing human metrics demanding effective strategies and accuracy in the workplace is essential.

Establishing tolerance for these new standards involves information, transparency, and trust. Employees must be fully informed about the who, what, why, when, and how of their emotional and mental assessments. Transparency and authenticity are key – employees need to understand the importance of this data, how it will be collected, and its outcomes. Effective communication from employers can foster this understanding.

Measuring human capital provides a unique opportunity for employees to engage in personal and professional growth. According to leadership experts Warren Bennis and Robert J. Thomas, the ability to find meaning in adversity is a hallmark of true leadership. This principle applies to all employees, highlighting the need for a workplace culture that fosters appreciation, growth, and transformation.

As a researcher with over 20 years of experience in human and organizational transformation, I emphasize the role of personal potential and the inherent ability to adapt and change. Frontier sciences like behavioral epigenetics reveal that positive and negative thoughts profoundly impact our biology. Employers can leverage this research to implement human capital metrics and develop strategies that benefit both employees and the organization.

Blending insights from psychology, neuroscience, epigenetics, and quantum physics, I have facilitated significant transformation in individuals and leaders. This fresh approach redefines how we view work, health, and quality of life, underscoring each person's capability to create and sustain change.

Despite the billions spent globally on leadership training, a significant percentage of managers remain toxic. Effective and lasting development is crucial for achieving workforce and corporate sustainability. Employers must adopt new approaches, utilizing human metrics and AI, to navigate the evolving landscape of human capital evaluation and performance. The future of sustainability hinges on how we measure and facilitate cultural workplace change.