Understanding the differences between human resources and human capital. Because there are differences! Sometimes the words "human capital" are used instead of "human resources", because it sounds trendy. But don't be duped! They cover different realities, mindsets and different practices! And this is what this presentation is about. Enjoy!

1. Differences between
Human Resources
and
Human Capital
By Xavier BARILLER

2. Differences between
Human Resources and Human Capital
First answer:
not that easy for a
novice

3. Differences between
Human Resources and Human Capital
Both of them are dealing with People
within an organization.

4. And so???
Differences between
Human Resources and Human Capital

5. So, let me share with you
a conversation I had.
Differences between
Human Resources and Human Capital

6. A friend of mine
financial job
(prestigious French education)
asked me
human capital practitioner
(master level + various certifications)
Differences between
Human Resources and Human Capital

7. what difference I make
between
Human Resources and Human
Capital.
Differences between
Human Resources and Human Capital

8. So I asked him:
what difference do you make
between
“resource” and “capital”?
Differences between
Human Resources and Human Capital

9. About “resource”
My friend: a resource is USED
Me: it’s utility, same as equipment?
My friend: yes

10. About “capital”
My friend: a capital must be GROWN
Me: the purpose is to increase
your capital?
My friend: yes!

11. About self-consideration from self point of
view
Me: so, as an employee, how do
you prefer to consider yourself:
resource or capital?
My friend: I’m a human being, Xavier!
As an employee, I’m not just
a facility!
But, I’m not sure what capital
I represent, I worth...

12. About self-consideration from organization
point of view
Me: as an employee, how do you
think you are considered:
resource or capital?
My friend: not sure…
maybe as an expense…

13. Does it
remind you
anything?
Differences between
Human Resources and Human Capital

14. Is it clearer now?
Differences between
Human Resources and Human Capital

15. It’s a
MINDSET!
Differences between
Human Resources and Human Capital

16. What is Human Capital
not about?
Not about payroll
Not about tax and tax optimization
Not about working hours regulations
Not about compensation
Not about signing recruitment contract
Not about supervising the training
attendance sheet
Not about employment laws
…

17. What is Human Capital
not about?
All these are about
management of
resources
… management of
human resources

18. Is management
of human resources
enough to sustain any
organization development?

19. HR management enough for sustaining
development?
NO

20. Why “NO”?
First,
Because, we are no more in a
production economy.
It’s no more only about
“using arms, hands and
legs”!

21. We are
in a global knowledge economy
Why “NO”?

22. We are
in a “using knowledge” economy
Why “NO”?

23. It’s a BRAIN economy!
And you’d better not make the economy
of the brain*! ;-)
Why “NO”?

24. Second,
In many countries,
organizations of any size
are
facing the
following challenges:
Why “NO”?

25. Following challenges
- war of talent
- succession planning
- effective leadership
- employee engagement
- motivation
- retention
- feeling of recognition
- culture problems
- cross-culture problems
- lost productivity
- lost creativity
- time, money and resources wasted
-…

26. So what makes the human capital?
They are different layers,
different angles/perspectives
to solve different problems.

27. Mainly human capital
is not tangible
but observable
in terms of results.
So what makes the human capital?

28. It’s not tangible because human mind is
one of the most complex things in the
Universe.
So what makes the human capital?

29. “If the human brain were so simple that
we could understand it,
we would be so simple that we couldn't.”
~ Emerson M. Pugh
So what makes the human capital?

30. To make things simple and accessible,
your human capital
(as an individual or as an organization)
is the sum of:
So what makes the human capital?

31. - Thoughts, feelings, beliefs and
perceptions regarding self and others,
emotional intelligence, personal maps
of the words, personal and professional
values, higher sense of purpose, different
layers of culture,…
So what makes the human capital?

32. - the Transformation of previous list
in terms of actions and behaviors –
social behaviors, professional
behaviors- , the ability to produce
results and what kind of results,…
So what makes the human capital?

33. - the conceptual thinking,
value judgment,
decision making styles,
the ability to see how things works
together, …
So what makes the human capital?

34. All these are Identifiable and
Measurable; there are
Ways to Develop them!
So what makes the human capital?

35. Human Capital Purpose
The purpose of
a Human Capital
Management / Optimization Department
is

36. toto aalignlign, to, to ooptimizeptimize thethe hhumanuman ccapitalapital
with thewith the bbusinessusiness ggoalsoals and businessand business nneedseeds
to achieveto achieve ssuperioruperior pperformanceerformance,,
and so, by the way, to improve the quality ofand so, by the way, to improve the quality of
life inside and outside the organization.life inside and outside the organization.
Human Capital Purpose

37. Sustainability
Moreover, the Human Capital Management /
Human Capital MINDSET is
not just trendy!

38. IT’S SUSTAINABLE.
IT MAKES ORGANIZATIONS
SUSTAINABLE.
Because it puts People First.
Sustainability

39. “Putting People First”
And
“Putting People First”
is both a matter

40. - of
LEADERSHIP
,
“Putting People First”

41. - and answering a global demand from
individuals* requiring for
“Less Finance and More Human oriented
decisions and actions in business
life”
* wherever they are from – from developed countries to emerging economies
(such as Bangladesh)
“Putting People First”

42. So, >, = or < ?
Some people asked me:
So,
Human Resources
>, = or <
to Human Capital ?

43. They are the
2 different faces
of the same coin.
So, >, = or < ?

44. So, >, = or < ?

45. So, >, = or < ?
This is the same question as
“Is Leadership more important
than Management?”

46. Leadership without management:
not that much happens!
So, >, = or < ?

47. Management without leadership:
things happen, but what for?
Loss of meaning
loss of motivation and
then ruin of everything
on the long run …
So, >, = or < ?

48. ? Human Capital practitioners
Some people asked me:
“Are HR professional
more predisposed
to be HC practitioners?”

49. Do you think years of experiences
in payroll,
in recruiting process,
…
are particularly relevant or more than
… (let’s say) sales or public relation
experiences?
? Human Capital practitioners

50. If so,
explain me! ;-)
? Human Capital practitioners

51. Human Capital practice requires:
Tools,
Methodologies
and Business Acumen
(successes and failures experiences)
? Human Capital practitioners

52. Human Capital practice requires:
Openness,
Desire for helping others,
Reflective Work on Self,
? Human Capital practitioners

53. Human Capital practice requires:
Superior Empathy skills,
Communication skills,
Strategy and Practical skills
? Human Capital practitioners

54. The end
I whish
differences are clearer
now
for you.

55. Have
a
great day!
The end

56. You
have
Great
People!
The end

57. The end
You
are a
Great
Person!

58. Need HELP ?
Want to identify your Human Capital?
More?
Take action now!
xavier.bariller gmail.com
The end