What is the Role of Health in Human Capital Formation?

By K Balaji|Updated : January 23rd, 2023

The role of health is important for human capital formation, as healthy people have more potential to do well and can perform to the fullest. Good physical and mental health can help a person work with full potential and efficiency and achieve better results. Now, let’s dive deeper to understand the concept of health for human capital and resources.

Health in Human Capital Formation

Health plays a key role in a person's performance, as good health can result in a good performance. Good health is when your physical, mental and social well-being is good. Thus, you don’t have any disease or medical condition. In such a state, you can:

  • Perform your duties well and work at your full potential.
  • Contribute to the development and growth of the economy.
  • Become an asset to your organization.
  • Your efficiency naturally increases with good health, positively affecting your productivity.
  • Good physical health equals good mental health, which is the most significant factor in the happiness quotient of an employee.
  • If an employee is mentally relaxed and happy, they will put extra effort into their work.


What is the Role of Health in Human Capital Formation?

Since healthy people have greater potential for success and can give their best efforts, health plays a crucial part in developing human capital. The logic is simple. Good health enables a person to perform efficiently at work and use their full potential. This is because an unhealthy person will not be able to deliver good results and will eventually become a liability to any organisation.

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