Research Of Enterprise Human Capital Investment And Risks Prevention

Nowadays, the company management has realized that the employees are the most important asset in their business. If the company recruited the right persons, and also give them effective motivation, they will perform good results and better future to the company. To transform the Human Resources to Human capital, and bring it into play good roles, the company management must understand the characteristics of Human Capital and know how to do Human Capital Investment, and also need to do many works and use effective methods to prevent the risks of Human capital investment.A lot of statistics data has showed that human capital investment and the accumulation of human capital are the key factors to the economic increase in many countries and companies. Now the human capital investment becomes more important in the human resource management even than before. Company management begins to analyze the human capital investment by using the economic knowledge.Because of the human capital investment is a long term as well as uncertain investment, so it is more risky than other similar investments. There are several main risks: the first is the mismatching of job position with employee; the secondis key person resignation; the third is improper motivation strategy, the 4th is the risk of employee dishonesty and immorality; the last one is the change of market environment, Government policies and new technologies. Based on the above mentioned situations, right measures must be made to reduce the risks: first of all, we should well plan the Human Capital Investment strategy, emphasize the job analysis, well test and evaluate the candidates and employees, so as to match the job with proper person; Secondly, we should work with the individuals employee to do the staff career development plan; Strengthen staff service and build up company culture. Finally, we should set up effective motivation plan, improve employment contract and restricted conditions management according to the company policy.In this paper, we will analyze the human capital risks and the measures of how to prevent the risks in more details.