How to Best Utilize Human Capital Based on your Generation

How to Best Utilize Human Capital Based on your Generation

It’s no secret that the economy is heading towards a recession. And, it’s likely that things will only get worse before they get better. That is why it’s important to start thinking about ways to prepare. One of the best ways to do this is by investing in your own human capital. Human capital is the value of a worker’s skills, knowledge, and experience. It’s what makes you valuable to employers and helps you earn a higher salary. 

From time to time, companies are forced to make cuts. The one thing they can’t cut is the need for skilled workers. This is where human capital comes into play. If you have the skills and experience that employers need, you’re more likely to keep your job, and even negotiate a higher salary. 

If your current occupation is just not cutting it, leveraging your human capital to find a new job can result in a higher-paying and more fulfilling career.  

Human Capital Matters Now More than Ever 

You’re probably wondering why we are going into so much detail about human capital when there are plenty of other forms of economic capital to leverage. The truth is: the economy is showing signs of going downhill, probably into another recession. Inflation has become very apparent and interest rates are rapidly rising. 

The traditional routes people used to aid themselves during a recession are just not cutting it anymore. Bonds will not give back the way they once did, real estate is subject to high-interest rates, and investments are tied to inflation and not as reliable.  

Cash has proven to be the most stable and profitable way to withstand a possible recession. The best way to get cash is by utilizing your human capital within the workforce. 


How You Can Utilize Human Capital 

Everyone is at a different spot in their career, meaning everyone is at a different point in their retirement plan. A possible recession and a longer lifespan (due to medical advancements) can have an impact on your retirement plan. 


For years the norm was to retire comfortably around 65 with ample savings. However, this is no longer the norm and for many is not as achievable. Medical advancements have extended the average life expectancy. This means the typical 15 year retirement may now extend to 30 plus years. The normal retirement savings amount will no longer be enough. 

To prepare for this you could stay in the workforce longer in your current field. If you have been in this field for a while you have most likely accumulated a comfortable salary. Try to leverage your human capital for an even higher salary or transfer to a field that is more enjoyable to you.  

Gen X and Younger 

For those who are farther from retirement, your workplace may be hit hard by a recession and as a result, need to make cuts or layoffs. You can use your human capital to navigate new or current careers. 

Much like retirees, you have the ability to negotiate a higher salary with your employer. Use your human capital to show how valuable your skills are to the workforce. Currently, many companies are experiencing a labor shortage You can use this to your advantage and find a new, more fulfilling career. Those with the proper skill set can pick and choose the job they want. 

This will not only give you more cash to handle a possible recession but will also better prepare you for a longer retirement. 

Human capital is an important factor in both economic growth and recession. During the good times, human capital can help drive the economy forward by providing skilled labor and innovation. During the bad times, human capital can be a useful tool to help withstand the unstable economy. 

The financial advocates at DuPont Wealth Solutions can help you navigate through the ever-changing economy. Give us a call at 614-408-0004 to schedule a free assessment. 

And to hear more about what human capital is and how you can best utilize it, listen to Episode 30 of our podcast, Your Financial Advocate.  

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