Final answer:
Human resources are a considerable cost for businesses, including various forms of compensation and benefits, as well as the opportunity costs of non-working activities. Investing in human capital can be costly but has the potential to enhance future productivity and earnings.
Step-by-step explanation:
Human resources typically represent a significant cost for companies. These costs include not just the salaries, but also total compensation such as employee insurance (mainly health), retirement plans, employer payments to Social Security, unemployment and worker's compensation insurance, and other benefits like Medicare. Employers need to consider the opportunity cost of employee activities, like attending a retreat, which impacts productivity by taking time away from regular work tasks. Investing in human capital such as training and education can, however, provide future benefits to a firm by increasing the productivity and earning potential of its employees.