The Agricultural Analogy
Understanding Return on Human Capital Investment
Return on human capital investment can be understood through a simple agricultural analogy. When a farmer acquires land, the first task is to understand the environment and determine which crops can grow there. The land is then prepared (Environment ), the right seed is planted (Growth Variable) and over time the appropriate processes (Time ) are applied to care for both soil and crop.
The interaction between environment, growth and time determines the eventual return. CCI Professional applies the same logic to human capital investment.