Metrics for Human Assets: An Empirical Analysis of the Current Practice in Service Sector Organizations in India

Abstract

Human Asset Measurement can be defined as quantifying the contributions of all employees of an organization to produce value from their knowledge, skills, abilities, and other characteristics as well as the organizational processes, like recruitment, selection, training, etc., which are used to build and support these human aspects. It involves number of parameters to evaluate the employees in the organization. The study was conducted to find the metrics on the basis of which the service sector organizations in India evaluate their employees and to find whether there is any significant difference that exists between the employees from different backgrounds. It was found that experience, Client satisfaction surveys, Competencies, Cost of people, Cost per hire, Educational level, Seniority, and Tenure were identified as being used mostly as a human asset evaluation measure by the organizations. Also, there is a significant difference between employees having different years of experience in the choice of parameters used for measurement of human asset in their organization.

Keywords: Human Asset, Evaluation of Human Asset, Parameters to evaluate employees, Metrics for human asset.

JEL Classification: M19, M40, M41, M49