A consistent and consecutive effort to evaluate Human Capital is critical for long term sustainability and performance. When an organization classifies human capital as its greatest asset, it is essential for the organization to ask the following questions:

Is this asset being utilized effectively in the organization?
Will this asset brings yield a good return?
What returns will this asset yield?
Will this asset depreciate rapidly in the organization?
Will this asset turn out as a liability (non-performer) in the organization?
What courses of actions are needed in order the appreciate the value of this asset?

The cost of Human Resources is usually about 20-50% of the operating cost; therefore it is important for a corporation to manage its talent in order to fetch value of the organization. Due to this, the impact of effectiveness must be MEASURED!