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2011
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| March 2011 |
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Tuesday, 08 March 2011 12:30 - 14:00
Human Capital Measurement
Keith Bedingham, Verax International Since the days of the industrial revolution, modern accounting methods treat employees (wages) as a cost on the profit and loss report. Financial capital, which shows as an asset on the balance sheet, consists of money, buildings, plant and machinery. But there is no provision for representing employees as an asset. Human Capital Measurement is creating the conditions whereby it is possible to quantify the Added Value that people create in an organisation. It is a way of measuring the ratio between the Investment in people and the Contribution made by people (as you would for any other asset). In turn, this means understanding what is done in the organisation that increases or diminishes the contribution. 
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