Investing in human capital More skills - better opportunities for realization

Contents  The investments in human capital - EU aspects  Investing in human capital  Roles and responsibilities in the process of investing in human capital  The return of the investments in human capital

Investing in human capital - Definition  The human capital covers the sum of knowledge, skills, competencies, abilities, health condition and working capacity, motivation and behavior at work that have a certain value and are a source of present and future incomes both for the individuals – carriers of the human capital and for the company, which under agreed terms of employment uses that capital.

Investing in human capital – Features  In the process of accumulation of the human capital of the company, two parties are involved: the employed persons (workers and employees) and the employer.  Under the conditions of a market economy, the investments in human capital are justified if the expected additional incomes from them are higher than the costs of the investments.  Or the human capital can be viewed as a present value of the expected future income of the people, related to their abilities, acquired skills and education.

Investing in human capital – Features  The investments in human capital are state, corporate and individual. They contain two main components: 1. Investments in education and professional training that provide general fundamental preparation and basic knowledge and skills for the young people, applicable in the different fields and activities of the economy 2. Investments in the professional qualification of the workers and the employees, that provide the acquisition of professional knowledge, skills and competencies, related to the exercise of a given profession, specialty or position.

Roles and responsibilities in the process of investing in human capital  The state is interested in investing in the human capital development, because this way you can achieve higher quality and productivity, increased competitiveness, higher and sustainable economic growth rates and a higher standard of living for the population.  The employers are most interested in the hiring, the formation and the development of human capital with high potential because this is a crucial factor to business competitiveness, the quality and the market acceptance of their products and services, for the successful realization of their mission and vision.

Roles and responsibilities in the process of investing in human capital  The ready-received human resources, whose professional qualification is not developed and constantly updated, over time, faster or slower decrease their ability to "produce" additional value (gain, ie they lose their characteristics and their quality of human capital). That's the meaning of the European Strategy for (Lifelong Learning).  The individual (and his/her parents) independently determine the need and the level of the investments in human capital.

The return of the investments in human capital  Important factors in the security and efficiency of the investments in human capital are:  Applying an efficient system of career counseling  Elimination or reduction of the mistakes in the choice of the future profession and specialty, according to the personal qualities and skills of the individual and the needs of the labor market  Development of the "Lifelong Learning“ strategy.

What is the meaning of the term “Lifelong learning"?  It covers all the learning activities ‘from cradle to grave' upgrading a general, basic stock of knowledge and capabilities that exceeds the basic skills such as reading, writing and calculating.  It includes not only the acquisition of qualifications, which are directly related to the profession, but also the constant update of all the capabilities, interests, knowledge and beliefs of the person throughout his/her lifetime.  It is carried out by all the kinds of learning activities, including the informal learning and the self-learning, the acquisition of the related to profession skills and any other forms. The Lifelong learning can be defined as any purposeful learning activity, that serves for the continuous improvement of the knowledge, the skills and the competencies of the people.

What will Bulgaria earn from the application of the system for Lifelong learning?  Sustainable and ascending economic development because with the constant acquisition of new knowledge, skills and competencies, people will be more productive and companies more competitive.  Higher standard of living, higher corporate culture, greater mobility and job satisfaction and increased "attachment" of the people towards the firms, they work for. Keeping the talented young people in Bulgaria, instead of seeking opportunities abroad.  Bulgaria's access to the EU funds, since the application of the Lifelong learning is a requirement of the European Union.