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Purpose – The aim of this paper is to identify how human resource (HR) professionals can best approach the measurement of human capital. This is an evolving area and those organizations held up as exemplars are constantly reviewing their approach and measures and striving for better understanding of people contribution. Design/methodology/approach – The paper draws on experience and research from within the Chartered Institute of Personnel and Development in the UK since 2000 and up to 2011, as well as external research sources. Findings – The paper finds that there is no one way to carry out human capital measurement as it is context-specific. However, there are certain people management measures that when applied would provide managers with useful insights in most organizations. More important than specific measures is that the processes around measurement are accurate and trustworthy. Practical implications – All forms of capital must be evaluated and analyzed in context to understand how people drive business performance. Human capital only adds value if it can be successfully converted into goods and services that will make a profit. Originality/value – The paper examines people management measures which provide managers with useful insight in most organizations. However, it concludes that it is more important that the processes around measurement should be accurate and trustworthy. Keywords Measurement, Human capital, Intellectual capital, Human resource management Paper type Conceptual paper M easuring human capital has always been viewed as challenging. First there is the problem of defining human capital itself. Even the very term has been the subject of heated debate with one side hailing the benefits of treating people as assets rather than costs and the other side lamenting that people should be considered on the same terms as inanimate forms of capital. However, the term is here to stay and human capital is most commonly defined as an element of intellectual capital along with social capital, consisting of the relationships and networks that enable the creation and transfer of knowledge, and organizational capital, including the firm’s policies and procedures together with patents and other forms of knowledge owned by the organization rather than individuals. Human capital then is the knowledge, skills and experience of individuals and also their willingness to share these attributes with the organization to create value. As a result measuring human capital is not just about measuring skills or even contribution in the form of productivity; it is also about measuring how successfully that knowledge and contribution translates into organizational value. This was recognized as far back as 1999 with Lepak and Snell (1999) commenting that ‘‘the value of human capital is inherently dependent on its potential to contribute to the competitive advantage or core competence of the firm.’’