Blog #9

The five types of non-financial capital

The five types of non-financial capital are intellectual, social, emotional, cultural and human. Intellectual capital is the difference in value between tangible assets and market value. This type of capital can be seen in workers ability to help grow a business by a worker using their expertise to solve a problem within the business. The importance of intellectual capital is hard to quantify but when there is an absence of intellectual capital it is very visible. Social capital can be summed up in the saying “it’s all about who you know”. The social connections we form on almost a daily basis can have an effect on our lives in a million different ways. I have found in my current search for jobs my chances actually getting a good lead have come from my social circles rather than from a job listing on Monster.com. The people that know me can connect me with their network allowing me quality opportunities. Emotional capital is “feelings, beliefs, perceptions and values that people hold when they engage with any business”. Our interaction with the people surrounding us every day have huge implications on if were successful or not. Having a good emotional relationship at home and work can allow for a greater chance at success in any area of your life. There is a new drive in many industries to provide their workers with a comfortable work place. Companies realize that to retain your workers there must be effort put into the emotional state of the worker. If your workers display healthy emotional signs then they can be more productive and stay longer with the company. Cultural capital refers to “non-financial social assets that promote social mobility beyond economic means”. Things like education, dress and physical appearance are examples of cultural capital. Possessing these kinds of capital can allow a person to be shed in a favorable light within their culture. Working toward building cultural capital can help with advancement in many areas of a person’s life. If you are seen to be educated and well dressed then a person’s perception of you is formed and you are placed in a certain level within that culture. This may seem shallow to some but if you do not appear to be smart or well kept people will have a hard time looking past physical appearance to see who you really are. Human capital is the stock of competencies, knowledge, social and personality attributes, including creativity, embodied in the ability to perform labor so as to produce economic value.

     All of these non-financial capitals are important in this stage of most college graduates lives. Building capital in yourself can help you gain favor in an interview or make a connection with a person which will benefit you one day. I think one area I am currently exploiting is in building social capital. I was never on Facebook until just recently. I resisted the craze until I felt it could benefit me in my networking to find a job. You never know what connection will be of use so building social capital is what I am striving to do currently.