Saturday, October 21, 2006

Is Social Capital 'the New Black' for Human Capital?

Contrary to conventional wisdom -- firms can (and quite possibly must) learn when employees leave their company, not just when they hire away an employee from another business. A Wharton School research paper studies the social capital of employees who leave and who can be tapped into when they are future companies...

"The social capital approach would predict that the firm losing an employee would gain access to the new employer's knowledge, while the human capital approach would not," the researchers suggest in their paper."

With my focus being on human capital for over a decade I find this statement on "Social Capital" quite compelling. Maybe, with the advent of web 2.0 social networking, there is a shift from internal knowledge and training to building strategic alliances on the individual level utilizing human capital alumni (who then transfer their knowledge to the social capital realm) to increase the flow of industry and competitive knowledge!

The Social Network Benefit: Losing an Employee Doesn't Have to Mean Losing Knowledge. [Knowledge @ Wharton]

Read the Research Paper behind this article.

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