Human capital analysis has implications beyond the field of human resource management. It is also essential to the work of securities analysts. This paper addresses the proposition that securities analysts, their clients, and their industry can benefit from using human capital analysis alongside financial analysis for the purposes of making more transparent investment recommendations. While qualitative research into human capital is currently not being systematically adopted by securities analysts, it can illuminate the working of an organisation in a way that primary financial data on its own cannot achieve. When assessing which organisations are sustainable, a truly complementary approach requires both qualitative human capital analysis and traditional, financial, quantitative analysis. In essence, an integrated approach is needed for the purpose of making more transparent investment recommendations.
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