The opportunity cost of employing people with scarce skills and capabilities. Scarce human capital is regarded as a resource utilized by a company, similar to environmental resources. If a company reserves or utilized scarce human capital, it needs to put these resources into use and achieve something on the positive side in order to be considered net positive.
Why is it a negative impact?
- The opportunity cost of employing people with scarce skills and capabilities. This impact reflects the fact that oftentimes, the workforce is a company’s most valuable resource. If a company reserves or utilized scarce human capital, it needs to put these resources into use and achieve something on the positive side in order to be considered net positive. In this impact, we take into account people employed both directly by the company, as well as indirectly by its suppliers and customers.
- Simplified example: a company employs 140 highly skilled programmers, and they would need to make the most out of these people abilities.