Measuring the efficiency of human capital

Abstract

Increased efficiency is a necessity for any company in the knowledge-based economy, rather than an option, in the circumstances of constant change and global competition. The efficiency of using resources, especially intellectual resources, is a crucial factor in assessing the financial strength of an enterprise. Since intellectual resources are immaterial and mainly invisible, measuring and managing them is difficult. Measuring human capital efficiency provides relevant information for management, as human capital significantly affects a company's performance. The aim of the paper is to explain the importance of measuring human capital efficiency through selected conventional and contemporary indicators. This paper will show what managerial information we could get thanks to the quantification of human capital efficiency in using the specific indicators in the labour productivity analysis.