Many companies are still not fully realizing the ROI on their human capital. While people are often spoken of as assets, they are generally treated as costs, because there is no standardized system of valuing them. TEC research analyst Sherry Fox explores how basic accounting principles can apply to human capital management and argues that investing in people is smarter for your company’s bottom line than cutting costs.
human resources reference check
adding value. From a human resources (HR) perspective, it is very easy to appreciate how behaviors can add value to an organization, but from a financial perspective, placing a value on something as intangible as attitude, or even skills and knowledge, proves a little more difficult. Two of the main asset components that help determine an employee’s value are: Behavior —which includes elements such as having a positive attitude (optimistic, motivated, etc.), the ability to build interpersonal