Enterprise Investment In Human Capital Risk Aversion

Since T.W. Schultz and Gary S. Becker have founded human capital theory, the theory developed very quickly. However, when it comes to the question of the risk of human capital investment, there is no comprehensive research. Particularly, we rarely see systemic research regarding to enterprise human capital investment risk. Therefore, through studying this issue, we can not only deepen our understanding of human capital investment and its theory, but also enlarge the research scope of human capital investment theory and make it conform to the practice of human capital investment.At the same time, because of market economy, competition for talents is the key point of the competition among enterprises. Human capital investment is the foundation on which enterprises can keep on developing, which enhances the storage quantity of enterprise human capital and enterprise competitive power. However, as one kind of investment, since it can bring along rich return, human capital investment inevitably will go with lots of risks. On account of human capital investment risk, once human capital investment fails, enterprises lose both investment cost (material and time cost) and the opportunity cost. As for enterprises, the mistake in human capital investment decision will lose the superiority in the intense competition for talents. Since human capital investment is an important topic which enterprises must face, how to evade human capital investment risk and to obtain high return from human capital investment becomes the essential issue in human resource management in enterprises.This article, beginning from point of view of human capital investment, has researched on the reasons of the risk of human capital investment in enterprises with the theories of economics and management science, and put forward a more perfect system to eliminate the investment risk on former foundation, in order to give enlightenment on practice of human capital investment in enterprises.