Well-being at work as human capital

Abstract

Chapter 12 turns to human capital. Human capital is typically associated with the stock of skills and experience that an employee accumulates through education and training. However, the chapter refers to it in a broader context of well-being at work. This is affected not just by wages and working hours but also by the degree of hierarchy in an organization, management style, wage differences, prospects for upward mobility, and corporate identity. Alongside hierarchy, status, career progression, and inclusiveness, corporate culture (defined as shared beliefs, understanding, values, goals, and practices) plays a key role in determining well-being at work. The chapter records that it is possible to construct actionable metrics of well-being at work based on these factors that can be used to identify pain points within firms and the actions that are needed to address them.