Human Capital Investment Cost-benefit Analysis

In the paper, the human capital is regarded as the knowledge, skills and health in the human body. The value of human capital to the enterprises is displayed by the ability, behavior, effort and time. The investment on the human capital of an enterprise is to improve the level of employee's ability and the degree of effort of employee by using money.The thesis describes that there are three ways to invest human capital of enterprises. The first one is to increase the number of human being; the second is to training the employees; and the last one is to incentive the employee. The benefits from the human capital investment have two sides, one can be calculated in finance, and the other cannot be calculated in finance.The paper analyzes the limitations of the human capital investment in Chinese companies, and explains the causes of the situation. At last, the paper puts forward the straggles of raising the benefits from human capital investment through the theories of economists and experiences of the large companies in the world.