This chapter explores the trends in human capital formation towards building sustainable organisations. A literature review approach was adopted to investigate HR practices which contribute to human capital formation, the contribution of human capital, as well as the barriers to human capital formation and theories of human capital formation. Human capital has been conceptualized as the collective knowledge that is embedded in the personnel, organisational routines, and network relationships of an organisation. It was found that many countries such as China, Russia, India, and Brazil are experiencing economic growth because of the investment in their human capital formation. The review of empirical studies showed that human capital has been considered as a firm's strategic resource for sustainable competitive advantage. This chapter submits that to prevent loss of human capital, it is important for organisations to create an environment and culture that will foster or encourage individual and organisational learning.