Are We Measuring Human Capital Resources Correctly? The Validity of Extant Human Capital Measures

Abstract

Human capital resources (HCR) are considered important resources for organizations. However, researchers have defined and measured HCR in various ways. Thus, it is unclear what HCR entail and the extent to which existing measures provide valid inferences regarding the HCR construct or its relations with other variables. We conducted this three-study research to address these issues. In Study 1, we reviewed HCR definitions (k = 84) and found that most definitions focus on collective knowledge, skills, and abilities. Recent definitions also tend to include other characteristics (e.g., personality). In Study 2, we used a definition of HCR emerged from Study 1 as a basis for a content analysis of HCR measures (k = 137). Results revealed that only 39.4% of HCR measures focused solely on HCR. Most measures assessed other constructs, such as variables that theoretically are antecedents of HCR (e.g., education, work experience) or other types of resources (e.g., physical resources). In Study 3, we tested whether HCR measures that assess HCR only have a stronger relationship with collective performance than HCR measures that focus on other constructs. A meta-analysis of 94 independent samples revealed that the HCR only measures were about three times more predictive of collective performance (? = .32) than were the non-HCR measures (? = .11). Overall, these findings suggest that extant HCR measures often are contaminated or deficient and, in turn, likely underestimate the value of this key resource to organizations. We identify implications and suggestions for assessing HCR in future research and practice.