Department of Management Studies, University of York
Abstract
Despite Government and academic interest in valuing human resources, there has been relatively little progress in reflecting the value of human resources in UK organisations. This research uses a survey questionnaire to identify perceptions and practices in the area of valuing human resources in three types of UK organizations; traditional companies, knowledge intensive companies and local authorities. The survey focuses on the importance of valuing human resources, current measurement practices, key barriers to the valuation of human resources and the progress expected in this field over five years in UK organisations. Although the majority of respondents identified that the measurement/valuation of human resources was important to their organization, only little or moderate progress in recognizing the worth of human resources in financial statements was expected. The main reasons for this were identified to be lack of understanding and support of the area by others in the organization, particularly senior management, lack of resources, uncertainty as to what information should be reported and lack of precision and reliability in current human resource measures. The research identified that there is more interest in the area from human resource professionals than accounting professionals and that valuation of human resources should be included in internal reports rather than reported externally. More research is now needed, both on conceptual models for valuing human resources within organizations and empirical research focusing on issues such as gaining commitment to valuing of human resources by senior management, the development of systems of valuing human resources, how systems to value employees, when developed, are implemented in organisations and the consequences, both intended and unintended of how the systems operate in practice
