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Human Capital Practices in Different Industries in Croatia

A crucial element of intellectual capital is human capital with its specificities such as knowledge, special experience, skills, abilities, emotional intelligence which make it a resource which is very hard to copy. With these characteristics, human capital provides basis for the creation of company’s sustainable competitive advantage. On the other hand, human capital contributes to the company’s overall value, especially with its positive correlation to company’s performance. The aim of this paper is to provide empirical evidence in human capital practices in different industries in Croatia. Two hypotheses will be provided. The first hypothesis implies that companies that invest in human capital will obtain better financial results than companies with insufficient investments in human capital. The other research hypothesis tests whether human capital investments are greater in human capital intensive industry or in labour intensive industry. A verification of the empirical evidence will be provided through the sample of Croatian large companies within construction and information technology industries. Financial indicators that will be used in this empirical research are based on previous researches on a similar topic.

human capital; investments; human capital intensive industry; labour intensive industry; financial indicators

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