Appraisal of Human Resource Accounting on Profitability of Corporate Organization

Abstract

This study is to determine the adoption of Human Resource Accounting (increase in staff salary, increment in staff and staff retirement benefits) on the Profitability of Corporate Organizations. Specifically, the study sought; to determine the extent at which increase in staff salary has affected organizational profitability; to ascertain if the increment in staff has contributed positively on organizational profitability and to evaluate the extent at which staff retirement benefits has effect on organizational profitability. Research questions and hypotheses were formulated in line with the objectives of the study. Exploratory research design and time series data were adopted for this study. Data for the study were collected from selected ten (10) commercial banks in Nigeria. Data collected were analyzed and tested with t-test statistical tool with aid of SPSS version 20.0 version. The study revealed that the study revealed that increase in staff salary has positive effect on organizational profitability, also that the level of increment in staff has influence on organizational profitability. Another finding is that staff retirement benefits have positive effect on organizational profitability. The study recommends among other things that the relevant authorities should look into coming up with a financial reporting standard on human resource activities. Also that organization should enhance the retention of education and training on staff so as to avert wastage of knowledgeable investment.