The Essence of Human Capital in a Building Company – Selected Aspects

AbstractThe role and essence of human capital within the turbulent environment of construction companies on the Polish market is very often underestimated. The construction sector is seen as a field where the main advantage for the management board is the knowledge about the market, about its investors and prices whereas the aspect of human capital is considered as an executory force of assigned projects not as the force which builds competitiveness of the business. Simultaneously many businesses strive to change this approach, in order to gain market advantage and become more competitive for Investors, for example they highlight the role of human capital in the business approach.The main aim of this article is to present chosen aspects of human capital in an construction enterprise. The starting point for further analysis is the theoretical recognition of human capital, its role and the integral connection with the intellectual capital of an enterprise. Human capital constitutes inborn skills and acquired skills, thanks to which if adequately invested in can be developed and enriched. This places the people in a significant position within the economical definition of business activities in a company.The second part of the article presents an analysis of the Human Capital Efficiency (HCE) quotient measuring effectiveness based on the VAICTM (Value Added Intellectual Coefficient). Human capital (HC) with regard to the HCE index is connected to all employee expenses (salary and other provisions) however does not constitute intangible assets such as motivation, involvement as well as preventing deprecation and can be calculated as a company expense such as medical insurance. Thus a further analysis will be conducted with regard to:•Defining the factors in the dynamic scale•Analyzing the key factors used in human capital management using the dynamic scaleThe third part of the article is connected to the results of the conducted analysis on selected large polish construction company. A further analysis for the above mentioned dynamic factors will be connected to medium sized construction companies apart from the current analysis where these factors play an important role with regard to the development of the company