Most business leaders who offer variants of the cliché that “people are the company’s greatest asset” seldom match words with deeds. More worrying, though, is that people are not being matched to jobs in which they can excel – now more than ever.
Alarmingly, a vast majority of organizations were taking the wrong, outdated approach to managing and developing human capital, argued professor Erik Brynjolfsson, director of the Digital Economy Lab at the Stanford Institute for Human-Centered AI, and arguably the world’s leading expert on the role of digital technology in improving productivity.
“Human capital is a $220 trillion asset in the U.S. – bigger than all the other assets put together, and about ten times the country’s gross domestic product,” said Prof. Brynjolfsson. “The most important asset on the planet is the one we’ve been measuring the worse.”
As a result, human capital has been “probably the most misallocated asset on the planet. Businesses are not putting the right people in the right jobs; they’re not hiring, firing, and reassigning where they need to be doing it.”
This gloomy analysis is a lose-lose for employer, employee, and society, added Brynjolfsson. “Think of how many people are not in the right job, living lives of quiet desperation,” he said.
The full version of this article was first published on Digiday’s future-of-work platform, WorkLife, in March 2023 – to read the complete piece, please click HERE.