Employees: Invisible Added Value of a Company

Open access


In developed economies, where the work input exceeds the physical input, the lack of harmonised and standardised rules of human capital assessment is visible. The mentioned indicates the deficit of an important part of the comprehensive value-added assessment. What do we lose by ignoring the important part of the employee’s value added in the working process? Companies underestimate the employee’s human capital input. Consequently, society typically does not recognize invisible sources of value added in companies. The goals of this article are to highlight the missing human capital (HC) element at the company level assessment and to raise the awareness about its importance. By analysing existing methods of coping with the mentioned challenge, no harmonised solution is evident. By the increasing share of the service sector, emphasis on the HC element should be monitored more closely. The article focuses on the missing and invisible human capital elements in the framework of the value added; it offers suggestions for inclusion of the human capital factor in the process of company’s value added assessment as well as reflections on further steps in this direction.

Becker, G. (2017). Human capital. The people’s champion. Retrieved from https://www.economist.com/printedition/2017-08-05

Berkowitz, S. (2001). Measuring and reporting human capital. Journal of Government Financial Management. Business Source Complete. EBSCO (pp. 13-17).

Bohinc, R. (2016). Družbena odgovornost (Social Responsibility). Fakulteta za družbene vede. Ljubljana: Založba FDV.

Dean, P., McKenna, K., & Krishan, V. (2012). Accounting for human capital: Is the Balance sheet missing something? International Journal of Business and Social Science, 3(12), pp. 61-64.

Eurofound (2016a). Sixth European working conditions survey: Overview report. Luxembourg: Publications Office of the European Union.

Eurofound (2016b). Changing places: Mid-career review and internal mobility. Luxembourg: Publications Office of the European Union.

European Commission (2015). The 2015 Ageing Report. Economic and Budgetary projections for the 28 EU Member States (2013−2016). European Economy, 3/2015. Luxembourg: Office for Official Publications of the European Communities.

European Commission (2017). Employment and Social Development in Europe 2017: Annual Review 2017. Luxembourg: Publications Office of the European Union.

Fiz-enz, J. (2000). The ROI of human capital: Measuring the economic value of employee performance. New York: AMACOM.

Florida, R. (2005). Vzpon ustvarjalnega razreda (The rise of the creative class). Velenje: IPAK.

Gostiša, M. (2017). Ekonomska demokracija v 21. stoletju (Economic Economy in the 21st Century). Kranj: ŠCID - Študijski center za industrijsko demokracijo.

Liu, G., & Fraumeni, B. M. (2014). Human capital measurement: Country experiences and international initiatives. Third World KLEMS Conference. Tokyo, Japan, May 19-20, 2014. Retrieved from http://www.worldklems.net/conferences/worldklems2014/worldklems2014_Liu.pdf

Lundwall, B., & Johnson, B. (1994). The learning economy. Journal of Industry Studies, 1(2), pp. 23-42. https://doi.org/10.1080/13662719400000002

Keeley, B. (2007). Human Capital: How what you know shapes your life. Paris: OECD Publishing. https://doi.org/10.1787/9789264029095-en

Kwon, D. (2009). Human capital and its measurement. Third OECD Forum on Statistics. Busan. Korea. 27-30th October 2006. Retrieved from http://www.oecd.org/site/progresskorea/44111355.pdf

OECD (1996). Measuring What people know: Human capital accounting for the knowledge economy. Paris: OECD Publishing.

OECD (1998). Human capital investment. An international comparison. Paris: OECD Publishing.

OEDC (2001). The well-being of nations. The role of human and social capital. Paris: OECD Publishing

OECD (2006). Creating value from intellectual assets: Meeting of the OECD Council at ministerial level 2006. Paris: OECD Publishing.

OECD (2015). The future of productivity. Paris: OECD Publishing. http://dx.doi.org/10.1787/9789264248533-en

OECD (2016). The productivity - inclusiveness nexus. Paris: OECD Publishing.

OECD (2017a). OECD compendium of productivity indicators 2017. Paris: OECD Publishing.

OECD (2017b). OECD skills strategy diagnostic report Slovenia 2017. Paris: OECD Publishing.

UNDP (2016). Human development report 2016: Human development for everyone. New York: UNDP. Retrieved from http://hdr.undp.org/sites/default/files/2016_human_development_report.pdf

UNU-IHDP and UNEP (2014). Inclusive Wealth Report 2014. Measuring progress toward sustainability. Summary for Decision-Makers. Delhi: UNU-IHDP.

Woodhall, M. (2001). Human capital: Educational aspects. International encyclopedia of the social and behavioral sciences (pp. 6951-6955). Amsterdam: Elsevier. https://doi.org/10.1016/B0-08-043076-7/02469-4

World Bank (2006). Where is the wealth of nations? Measuring capital for the 21st century. Washington D.C.: The World Bank.

World Bank (2014). World DataBank: World Development Indicators. Retrieved from http://databank.worldbank.org/data/views/variableSelection/selectvariables.aspx?source=world-development-indicators.

Zupančič, M. (2016). Inovacija upravljanja starejših znanjskih sodelavcev kot dejavnik inovativnosti in konkurenčnosti trga dela kot podsistema gospodarstva v Sloveniji (Innovation of Knowledge-Based Older Workers as a Factor of Innovation and Competitiveness of the Labour Market as an Economic Sub-system in Slovenia). Doctoral dissertation. Maribor: EPF.

Naše gospodarstvo/Our economy

Journal of contemporary issues in economics and business

Journal Information


All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 231 231 42
PDF Downloads 137 137 23