Human capital at work: The value of experience - McKinsey (2022)
The most important resource in any economy or organization is its human capital—that is, the collective knowledge, attributes, skills, experience, and health of the workforce. While human capital development starts in early childhood and continues through formal education, our research focuses on the next stage, which spans the full working life.
In this data sample, roughly a third of US, German, and UK workers, and almost a quarter of Indian workers, are on a path to move up one or more quintiles in estimated lifetime earnings from their career starting points. This upwardly mobile group stands out for making more frequent and bolder role moves. However, individuals cannot make bold moves unless an employer sees their potential and takes a chance on them in hiring. The most effective way for an individual to maximize the “experience effect” is to join an organization that prioritizes and strengthens their development.