Human Capital Index

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Definition: Human Capital Index

Human Capital Index measures how well an organization makes use of the ability of an individual to perform and create shareholder value through his/her competencies, knowledge and expertise. A higher human capital index indicates better management of human capital by the organization. It is measured on a scale of 100.

The human capital index can be enhanced by providing training to increase the expertise and competencies of individuals, providing bonuses to performing individuals, etc.

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