Human capital is a term used to refer to the skills, knowledge, and experience of an employee that is used to generate economic value. It represents the value that an organization derives from the combination of its people and their diverse backgrounds and skills. Human capital is what allows a company to grow, innovate, and compete in a global market. It is also instrumental in the creation of new products, services, and ways of doing business. In short, human capital is what makes a company successful.