Psychological Capital

This is what is studied in business schools: Companies need capital to carry out their activity: Financial capital, real estate capital, immaterial capital and human capital. The greater the quantity and quality of capital, the more money they earn.

But there is another type of capital that is not taken into account when valuing a company and that generates astronomical profits.

This concept was first studied and developed in 2007 by Luthans. It is Psychological Capital. (PsyCap)

The concept is easy to understand: The happier the employees, the more profitable the companies.

But in order to make this happiness scientifically measurable and controllable, we have to divide it into four psychological states.

The PsyCap consists of:

1. (H)Hope. The motivation to reach a goal.

2. (E)Self-Efficacy. When you know you are capable of doing it.

3. (R)Resiliency. Is the ability to recover from a failure or disaster.

4. (O)Optimism : Optimists are people who expect good things to happen to them.

These four skills (H.E.R.O.) can be measured for each employee, and thus calculate the psychological capital of the company as a whole.

Measuring is important, but best of all the PsyCap can be developed.

Applying Business Psychology through Workshops and individual interventions can raise psychological capital. And very quickly. A two-and-a-half hour micro-intervention raises the psychological capital of the participants by 2 percent.

If you are a manager or a professional you are wondering:

How much money does 2% of PsyCap mean to my company?

This has been calculated for mid-cap North American companies. If your company generates 100 Million in sales, a micro intervention of 2.5 hours increases your average sales by 600,000 euros.

Imagine what you can achieve with a broader intervention.

How much Psychological Capital does your company have?