Purpose and benefits

People are often spoken of as assets, but are generally treated as costs, because we have no credible system of valuing them.
The problem is that in today’s knowledge-based organisations value is driven more by people than by any other factor.
There are five approaches to building a measurement system for people, or human capital.
One of these, the attempt to value people financially, is known as human resource accounting.
Current best practice looks at quantifying the value of people in terms of their characteristics and the value they produce in both financial and non-financial terms.