Theoretical and methodological foundations of investing in human capital development

Abstract

In the modern age of information society and rapid globalization processes, with the increasing role of knowledge in the economy, it becomes evident that the key source of profit is human capital. Any capital of an enterprise, except human capital, can be considered merely as passive resources that require human intervention to create additional value. Economic growth and human development interact in the long term, complementing each other mutually. Economic progress is a necessary condition for improving the quality of life and human development. By investing in their employees, companies stimulate their labor productivity, enhance work efficiency, reduce the time required to complete tasks, and strengthen their competitiveness. Investments are directed towards organizing professional training and development, preventive measures to support employees' health, and overall improving the quality of work life.
The article examines the theoretical and methodological aspects of investing in human capital development. A retrospective analysis of human capital development theory is conducted, identifying the characteristics of investments in human capital and their impact on economic growth. The analysis of works by domestic and foreign scholars regarding the definition of "investments in human capital" is presented. Special attention is given to strategies for investing in education, health, professional training, and talent development. The role of the state, businesses, and other entities in shaping and preserving human capital is discussed. The conclusions of the article can be valuable for developing investment strategies in human capital at the level of the state, companies, or other organizations.