Human capital is often overlooked by investors. Increasingly, however, the drivers of performance and valuation are intangible asset growth – with human capital a significant component
- There has been a shift in the way firms create value, as human capital and intellectual property occupy a significant piece of a firm’s market capitalisation
- Columbia Threadneedle Investments will use the five ‘S’ framework to identify and evaluate the firms proactively managing human capital
- Human capital, although often overlooked by investors, is a significant component of the forces driving performance. Businesses investing in human capital are likely to derive a competitive advantage
Interested in learning more?
To help assess how well an investee firm is managing its human capital, we have created the “Five ‘S’ framework of human capital management”. This sets out five factors a firm should consider when managing human capital and allows Columbia Threadneedle research analysts to identify what “good” looks like.
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