Human Resource Accounting is the process of “identifying and measuring data about human resources and communicating the information to interested parties.” (www.whatishumanresource.com, 2019.) It is essentially the process of quantifying the cost of your assets and determining their value to the company or organization. Some of the benefits of HRA include making executive decisions on developing, maintaining, and building your assets to maximize effectiveness, and it allows leaders to better track the use of their resources. Employees can best be categorized as investments, because any company invests in their future. That future depends on the development of the people who get the job done, along with the sustainment of the any stakeholders involved. It is very important to balance the difference between calling your people assets versus expenses. Their drive and their output is contingent on how you label them and what their worth really means to the company. The last thing employees want is to be treated as objects merely to accomplish a boss’s goal. They want to know that they are the reason for success. The same goes in the military. The younger, lower tiered employees are the backbone of the unit and are the “worker bees”. Then the mid level supervisors are the ones that oversee the technical side of the job while mentoring and teaching them to grow. Then there’s the management team, to make sure their work doesn’t go unnoticed. At this point in their careers, it isn’t about them developing into higher management. It’s about making sure those below them can also climb the ranks and become the leaders they have set out to be…with the help of those supervisors of course.
Human Resource Accounting – What is Human Resource? (Defined) Human Resource Management Topics – Labour Laws – High Courts & Supreme Court Citation – Case Laws. (2019). Retrieved 6 November 2019, from http://www.whatishumanresource.com/Human-Resource–accounting