Final answer:
To benefit from the investment in human capital, firms should focus on employee retention by offering ongoing training and development, establishing supportive policies, and investing in education and skills to enhance workforce productivity.
Step-by-step explanation:
In order to take advantage of investment in human capital, a firm should establish practices that will enhance employee retention. Bureaucracies must continually invest in human capital beyond the hiring process by training and developing employees. This approach not only nurtures their skill sets, contributing to the growth of the company, but it also encourages higher employee retention, minimizing the costs associated with turnover such as recruiting and training new staff. Employee retention strategies may include designing business rules that do not discourage hiring, building institutions to facilitate job information flow, and aiding worker mobility. For workers whose skills become obsolete, policies for retraining are essential. This support enables employees to adapt and grow within the industry, thus fostering a more capable and dedicated workforce.
Furthermore, investing in education and skills enhances the productivity of the workforce, leading to increased earning potential for employees and economic growth. By maintaining a focus on upgrading health, skills, and knowledge of employees, firms are investing in the long-term success of both the company and the economy.