Sample calculation in a web solution

Web solution and sample calculation

A web solution is now available with which companies can determine the human-capital value of their staff using the Saarbrücken Formula at the push of a button. The relevant data is entered into the software in a preliminary exercise. This may include for instance the composition of the employee groups, length of service (firm tenure), or the average personnel development overhead. Other data, such as market salaries or the job-specific ‘life span’ of knowledge can be generated directly by the system. In the present sample calculation, the human capital on the results screen can be analyzed as follows.

A capital loss occurs since new appointments and personnel development do not fully compensate for the natural aging of knowledge. Here a depreciation of 932,628 balances a positive personnel development of 300,000. This is why it is important for knowledge management to adopt an active role. Employee commitment and retention have a positive effect on the figures (788,330 and 472,998), both being key performance indicators that become transparent and controllable in this way.