---
title: "Human Capital Productivity: What is it?"
description: Understanding human capital management and how worker productivity greatly impacts a company's bottom line.
image: https://blog.vibecatch.com/hubfs/shutterstock_244609015.jpg
---

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 Sep 6, 2017 4:00:00 PM

# Human Capital Productivity: What is it?

"Employee engagement" and "company culture" are hot topics in the HR Tech world these days, and for good reason. The two go hand-in-hand in creating a better work environment. What you probably don’t see too often, though, is “human capital productivity.” However, as unknown as it might be, it’s importance is extremely high.

Human capital productivity refers to the time an employee spends at work, how that time is utilized, and how it plays a role in the profitability of the organization.

Leadership at any company can easily claim to have the best culture. They can claim that they have great employee engagement, best processes, best communication among peers, and more. It’s sort of like how everyone puts on their website, “We’re the #1!” The hard part in all this is being able to actually quantify it, and understand what it really means.

Bottom line, there needs to be a purpose for having good employee engagement and culture, and that purpose is to improve human capital productivity. We need to make sure that the time that is being spent at work is being utilized efficiently, and in order to do so, we have to break down the components that really make up great culture to begin with.

VibeCatch takes a very scientific approach to this, as staff performance is such an essential part of human resource management. Understanding how to measure HR management’s effect on business performance will help leaders find their competitive advantages. Our scientific approach provides methods to analyze and master staff performance measurement.

First, we need to acknowledge and understand that each individual employee is providing a monetary value to the organization. While staff itself is a cost, it’s also a valuable investment that helps any organization create a competitive advantage within their market. Once you understand this, then it will be easier to see how your company culture will ultimately play a role in your bottom line.

To help you figure this out, VibeCatch has created the Quality of Working-Life (QWL) Index, that measures staff performance. In a nutshell, it is a quantified employee performance scorecard. Using QWL, you will be able to track your organizational progress through five different categories:

- Leadership
- Line Management (ie. Supervisors)
- Culture
- Skills
- Processes

Each category has a direct impact on another. If there are underlying issues in leadership, this would negatively impact line management and the overall culture of the organization. In order to solve problems, we have to understand where they originate from, and through the QWL method, leadership will have a much easier time pinpointing the areas of improvement in real-time that matter most to your bottom line. Through this, you’ll create a better company culturally, while also increasing your profitability.

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