Investments in human capital and its effectiveness

Modern global and innovative world, effective use of the workforce is a necessary factor for the development of a competitive economy and high rates of economic growth. This is impossible without the development and improvement of human capital and modern education system. Advancement of science, technology, medicine and other fields requires appropriate development of human capital. We consider particularly important the investments made in human capital according to different (especially tourism and agricultural) sectors and the study of their effectiveness. The purpose of our study is to justify the need to invest in human capital and to investigate its effectiveness, for which we conducted a survey of employers and employees in the field of agriculture and tourism about their attitude towards professional growth measures (training/seminars); the role of the state in this direction is also important. In the research process, we used statistical analysis and qualitative research methods. The conducted research showed us that. Holding of training/seminars for improving the qualifications of employees is without compromise, but it is becoming difficult to find funding. There is a mixed attitude on the part of the state and employees, while 57% of these measures are financed by employers. The investment made in this direction has an economic and social effect. Increases employee motivation and productivity, which has a positive impact on both the company’s and employee’s income. Effective management of investment in human capital contributes to the development of creative social actions. Based on the actual data of the developed countries, it was found that there is a direct relationship between the expenditure on education and the economic growth in the long term. As a result of acquired knowledge and experience, in the presence of highly developed human capital, productivity and profitability increase. International indices and rankings are one way to measure a country’s progress in various directions; however, it should be noted that they do not accurately reflect the current situation in the country. The human capital index (0.57) is considered a good level, however, in reality; the quality of the databases used in their calculation reduces the accuracy of the indices and ratings.