Human capital and labor productivity: interconnection and coherence

Marina Kryvtsova
PhD in Economics, Senior lecturer, Department of Human Resources and Labor Economics, Odessa National Economics University, Ukraine, e-mail: m.kryvtsova@gmail.com, ORCID ID: http://orcid.org/0000-0001-6069-9691

Cite this article:

Kryvtsova, M. (2018). Human capital and labor productivity: interconnection and coherence. Ed.: M. Zveryakov (ed.-in-ch.) and others [Liudskyi kapital ta produktyvnist pratsi: vzaiemozviazok ta uzhodzhenist; za red.: М. I. Zvieriakova (gol. red.) ta in.], Socio-economic research bulletin; Vìsnik socìal’no-ekonomìčnih doslìdžen’ (ISSN 2313-4569), Odessa National Economic University, Odessa, No. 3 (67), pp. 151–161.

Abstract

The article is devoted to the actual question of the mutual influence of human capital development on the level of labor productivity at the state level and at the enterprise level. It is emphasized that investments in human capital are considered as an integral part of enterprise successful development. In the modern economy, human capital acquires a decisive role, being the most important factor in economic growth and the welfare of society, the main criterion for labor productivity increasing and the company’s effectiveness evaluating in competitive advantages achieving. The main tendencies that are inherent in the «knowledge economy», which changes the emphasis in competitive advantages achieving from «technogenic» factor to «homogenous», are investigated. The statistical indicators of labor productivity on macro- and micro-level are analyzed. The analysis of investments in human capital at Ukrainian enterprises is carried out. It is determined that the staff training at the present stage of economic development by investing in human capital should be considered as a most important strategic, which enterprises set themselves. It contributes to the staff retaining, the staff turnover reduces, the labor productivity increasing contributes, allowing any enterprise not only to survive in market conditions, but also to achieve a competitive advantage, to retain and improve its market position, to ensure growth and accumulation of human capital. The activity directions for efficiency achievement of enterprise employees training process and positive long-term result in the form of labor productivity increasing are considered. Recommendations to promote of innovative employees development, which create the most significant contribution in the labor productivity increasing are formulated.

Keywords

human capital; labor productivity; human development; quality of life; life quality; investment in staff; staff training.

JEL classification: J240; O490; DOI: https://doi.org/10.33987/vsed.3(67).2018.151-161

UD classification: 331.522.4:331.101.6

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