The study will try to shed some light on the topic “Human Capital Challenges in organizations today.” In the first section, the study will discuss the significance of the term human capital in business environment of modern world. In the second part, the report will discuss three pertinent challenges such as integration between knowledge management and intellectual capital movement, financial challenges regarding human capital management and labor market supply crunch, which affect the dynamics of human capital strategy of the of organizations. In the third section, the report will try to analyze impact of challenges mentioned in the second section on retention and engagement of employees. In the fourth section, the study will suggest plausible strategy which can mitigate one of the challenges.

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