The Risks of the Human Capital Investment and Measures of Reducing the Risks

Abstract
Nowadays, the managers have realized that the employees are the most important resource in their business. If the human resource managers in the company recruit the right persons, and they can provide the incentive for their employees, this company will make a good profit. Human capital investment plays a very important role in the human resource management. The managers begin to analyze the human capital investment according to the specialties of this kind investment by using the economic knowledge. Because the human capital investment is a long term and unsure investment, this investment is more risky than other similar investments. There are 4 main risks: the first is the risk of choosing the objects in human capital investment、the second is the risk of matching the job with the employees、the third is the risk of drawing up the incentive institution、the last one is the risk of the labor change. According to the main risks, there are some measures to reduce the risks: first of all, we should emphasize the job analysis, second, we should emphasize the test and evaluation for every personnel, finally, we should emphasize the analysis of the in revenue and expense during the investment. In this article, we will analyze the human capital risks and the measures of reducing the risks in more detail.
…