Human Capital: What It Is and Why People Invest It

The 1990s may well be remembered as the decade of employee empowerment (at least in management theory circles), but very few companies ever put their money where their mouths were when it came to dismantling the old "command-and-control" structures. Thomas O. Davenport makes a fresh case for empowerment by placing the argument in the context of the current tight labor market, and presenting scarce knowledge workers as investors of human capital. These human capital investors should be valued, nurtured and rewarded by companies in much the same way that financial investors are cared for. Although many of the conclusions that result from this novel theory mirror those of earlier works in employee empowerment, we [...] strongly recommend this book for its original take on the changing nature of the employer/employee relationship.

This book is a valuable and well-written summary of key elements in the equation of how to entice employees - human capital investors - to invest in your enterprise to the benefit of both parties. It pulls together in one book, and one coherent framework, lots of valuable concepts. It is also full of practical ideas on how to implement those concepts. It's worth reading for those who are interested in leading people effectively.

As an avid reader of business books and a management consultant myself, I cannot say enough good things about this deceptively straightforward, yet truly great book. Davenport does what other business authors do not typically set out to do: he engages both your mind and your heart. Through the use of metaphors, stories, and real-life case examples, he outlines a sound conceptual framework for understanding employees as investors. Without resorting to glib cliches and "soft-headed" truisims, he builds a logical and convincing case that outlines how any organization interested in greatness can unleash the potential that resides in every employee. By conveying a deep and profound respect for the power and talent of people, he challenges the "architects" and leaders of organizations to create environments that will bring out the best in everybody. By emphasizing the reciprocity of the employee-employer relationship, he shows us how any organization can create and deliver a deal(or deals)that will attract, retain, and motivate the best talent available.