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Human Capital in Euros and Cents


Human resources is frequently concerned primarily with costs. At best HR managers may only be able to make an intuitive assessment of the positive effects that HR activities bring. An evaluation of human capital using the "Saarbrücken Formula”, developed at the University of Saarbrücken, enables the economic consequences of planned and implemented HR measures to be measured directly.

It’s a question you’ve heard all too often: "Why are employees only ever regarded as costs and not as valuable capital?” And "Doesn’t the value of a company’s human capital also contribute to the value of a company?” However, such discussions in the past have generally only paid lip service to the value of the employees and given rise to odd-looking and isolated indicators, which produced results that could not be compared across companies. The questions ultimately remained unanswered and discussions about how human capital should be assessed continued to chase their own tails.