Senior Professional in Human Resources (SPHR) Certification Practice Exam 2026 - Free SPHR Practice Questions and Study Guide

The term that encompasses the knowledge, experience, and future competencies of employees is known as human capital. This concept is crucial in human resources as it emphasizes the value and potential that individual employees bring to an organization. Human capital focuses on the cognitive skills, education, training, and abilities that contribute to economic productivity and organizational success.

In contrast, human resources generally refers to the broader department and functions that manage the employee lifecycle, including hiring, training, and compliance, but does not specifically emphasize the individual competencies or value of employees themselves.

Interpersonal skills refer specifically to the abilities that facilitate interaction and communication with others, such as teamwork and conflict resolution, but do not encompass the full range of knowledge and competencies employees possess.

Psychological capital consists of aspects such as self-efficacy, optimism, resilience, and hope. While these are important for employee performance and wellbeing, they do not capture the broader scope of knowledge and experience characterized by the term human capital.

Thus, human capital is the most appropriate term for collectively describing the valuable attributes that employees contribute to an organization.