Wednesday, February 19, 2014

The Value Of Human Resource Against Other Resources

Let's be honest. Shareholders are really interested in a unique goal: get their money back and the profit generated. 

There are many measurement methods that reveal information of how well managers are complying with this task, through the measurement of assets that generate results in the short term.  

CEO’s are often focusing on short-term results at the expense of longer-term performance. 

Therefore, management often fails to realize the value of human assets versus other assets because the value of human resources are very difficult to measure.

Whether a company does not measure the effectiveness of their human capital, never will know the economic contribution that people generate for the business, and when it does, the result can be seen in the long term, which is not very attractive today.  
Therefore, employees are viewed as expenses rather than as investments. However, employees want to feel that they are valued in the market and valued by their shareholders.

In today's workplace it’s required to consider employees as investments in terms of getting they feel committed to the organization strategy.


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