Measuring the efficiency of human capital

Veselinović, Nemanja; Krstić, Bojan; Veselinović, Martina

doi:10.5937/esd2102001v

Cited by 6 publications

(7 citation statements)

References 21 publications

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“…Human capital encompasses the economic worth of human performances such as education level, the training volume, intellect, skills, talents, health, etc. (Jovanović, 2018, Veselinović et al, 2020. Given that all investments and costs for workers (salaries, nonmonetary benefits, education, training, etc.)…”

Section: Human Capital: Cost Vs Investment In Human Resources?mentioning

confidence: 99%

“…Pe denotes personal expenses, whereas Si denotes the total amount of stimulating incentives. Furthermore, Pe includes employee or management salaries (net salary + payroll taxes), as well as costs for human resource development, such as education, training, and other costs (Veselinović et al, 2020).…”

Section: Human Capital: Cost Vs Investment In Human Resources?mentioning

confidence: 99%

“…Human capital efficiency measurement includes traditional and modern measurement models (Veselinović et al, 2020). The traditional human capital measurement model includes: a) human capital efficiency indicators (i.e.…”

Section: Human Capital Efficiency Measurementmentioning

confidence: 99%

“…The financial aspect of measuring labor productivity implies that categories defined in monetary terms are used, and data from the balance sheet and income statement are used as a data source (Veselinović et al, 2020). The rationale for this is to overcome the limitations of non-financial indicators of labor productivity measurement.…”

Section: Human Capital Efficiency Measurementmentioning

confidence: 99%

“…The rationale for this is to overcome the limitations of non-financial indicators of labor productivity measurement. Regarding the financial aspect of labor productivity measurement, there are different financial indicators (Veselinović et al, 2020) Efficiency is defined as the ratio of achieved outputs to inputs (Kucharková et al, 2015). Human capital efficiency is evaluated as the quotient of an economic results volume (output) and human capital value (input).…”

Section: Human Capital Efficiency Measurementmentioning

confidence: 99%

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The Impact of Human Capital Value on Human Capital Efficiency and Business Performance

2022

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In the knowledge economy era, human capital is a part of intellectual capital and a significant factor in enterprise competitiveness. The importance of human capital is often diminished due to the accounting expression of investments in human resources in the income statement as a cost (expenditure) component. This paper points to the fact that the cost of human resources is an investment that affects the growth of the business performance of an enterprise. Hence, the aim of this paper is to examine the impact of human capital value on human capital efficiency and business performance indicators, such as sales revenue (SR), earnings before interest and taxes (EBIT), and EBIT margin (EBITM). To examine this impact, empirical research is conducted on a sample of 24 companies with the highest brand value for the period 2012-2019. The regression analysis results show that sales revenue and EBIT grow by 0.77% and 1.1% respectively as human capital value grows by 1%. Additionally, findings reveal that the growth of the human capital value negatively affects the values of human capital efficiency indicators and EBIT margin in the sample of examined enterprises.

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Section: Human Capital: Cost Vs Investment In Human Resources?mentioning

confidence: 99%

Section: Human Capital: Cost Vs Investment In Human Resources?mentioning

confidence: 99%

Section: Human Capital Efficiency Measurementmentioning

confidence: 99%

Section: Human Capital Efficiency Measurementmentioning

confidence: 99%

Section: Human Capital Efficiency Measurementmentioning

confidence: 99%

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The Impact of Human Capital Value on Human Capital Efficiency and Business Performance

2022

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Comparison of the Strategic Factors of Enterprises in China and the United States in the Process of Green Transformation

Shen

2023

E3S Web Conf.

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The electricity industry is one of the largest contributors to greenhouse gases, which makes reducing carbon emissions critical to mitigating climate change. In response, renewable energy sources like wind, solar, and hydropower are replacing traditional sources such as oil and natural gas. Traditional energy companies are undertaking green transformations to invest in sustainable facilities that require significant capital and practice, making it an area for study and improvement. This essay examines the green transformation process in the power industries of China (China Three Gorges Corporation (CTG)) and the United States (NextEra Energy (NEE)), essential for reducing carbon emissions. Chinese companies experience political interference, which limits their flexibility in industrial layout and capital allocation. However, they have established an information system combining employee management and electronic human resources systems, enabling relatively ideal human efficiency. American companies have higher market flexibility, allowing them to negotiate agreements with the government and trade unions to ensure stable and efficient human-to-efficiency ratios during the transformation process. Future research should identify factors that influence the green transformation process and, develop strategies to overcome potential obstacles. Comparative studies of power industries in other countries could provide insights into improving the efficiency of green transformations.

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Human Capital Dynamics: A Catalyst for Bank Profitability in Emerging Markets – A Case Study of Serbia

Pavlović,

Stojanović,

Gligorijević

et al. 2024

SIJ

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Human capital emerges as a crucial determinant of banks' profitability, particularly in the context of developing economies. Through strategic investments in the specific skills and competencies of employees, banks cultivate a distinct body of tacit knowledge exclusive to their workforce. This tacit knowledge contributes to long-term profitability and establishes a sustainable competitive advantage. This paper aims to investigate the impact of human capital on bank profitability within the dynamics of a developing economy. The research focuses on the banking sector of the Republic of Serbia, covering the time span from 2020 to 2023. The independent variable in this study is human capital, assessed using the VAIC methodology and operationalized through the Human Capital Efficiency (HCE) coefficient. Meanwhile, bank profitability serves as the dependent variable and is operationalized through Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin (NPM). The research employs descriptive statistics, normality tests, as well as correlation and regression analyses. The findings demonstrate a statistically significant and positive correlation between human capital and ROA, ROE, and NPM, validating all research hypotheses. This substantiates the assertion that investing in the human capital of bank employees is synonymous with investing in the institution's most crucial asset, ensuring sustained profitability and a competitive advantage. Furthermore, such investments facilitate increased productivity among employees, fostering optimal resource utilization, continuous learning, the development of new knowledge, and effective resolution of complex problems. The significance of this research lies in its comprehensive elucidation of the importance and role of human capital, as a component of intellectual capital, in shaping bank profitability. Future studies could enhance this understanding by incorporating data on human capital and bank profitability from other developed economies, enabling a comparative analysis to glean insights for further improving human capital strategies. Additionally, an extension of the analysis to encompass a more extended time frame and the utilization of advanced statistical techniques like Structural Equation Modeling (SEM) and panel regression would contribute to a more nuanced understanding of the relationship.

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Measuring the efficiency of human capital

Cited by 6 publications

References 21 publications

The Impact of Human Capital Value on Human Capital Efficiency and Business Performance

The Impact of Human Capital Value on Human Capital Efficiency and Business Performance

Comparison of the Strategic Factors of Enterprises in China and the United States in the Process of Green Transformation

Human Capital Dynamics: A Catalyst for Bank Profitability in Emerging Markets – A Case Study of Serbia

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