The issue of corporate distress in non-financial corporations in Nigeria is timely and usually it is caused by efficiencies and labour force insufficiencies within the company. The given study provides a conceptual analysis of the impact of employee capability on corporate distress in terms of the Resource-Based View (RBV) and the Human Capital Theory. The conceptualization of employee capability is represented as a multidimensional concept that comprises technical ability, managerial capacity, innovative ability, adaptive ability and interpersonal ability. By using a qualitative analysis of modern literature and situational knowledge of the business environment in Africa and particularly Nigeria, the research will present a model of the interplay between these dimensions that either avoid or contribute to the vulnerability in a company. The results show that companies whose employee capability has been developed strategically are capable of being more resilient, innovative and adaptive in the context of financial and operation crises. The current research addresses an important research gap because of providing an integrated model connecting workforce characteristics to the early warning signs of business downfall. It ends with strategic plans on how they can develop talent, be resilient in their organizations, and empirical future exploration. Many scholars, policymakers, and corporate leaders can find practical and theoretical information regarding improving firm stability by reinforcing human capital in the proposed framework.