Sarah, an employee at M Ltd$.,$ is intrigued by the concept of human capital theory and its relevance to the company's recruitment strategies. How does human capital theory contribute to recruitment practices?

Question $4$ options:

Human capital theory focuses on reducing recruitment costs by outsourcing talent acquisition processes.

Human capital theory suggests that recruitment decisions should be solely based on the candidate's educational qualifications.

Human capital theory argues against the need for continuous employee development and training.

Human capital theory emphasizes the importance of investing in employees' skills and knowledge for long$-$term organizational growth.