“CEO’s often claim that “Human Capital is their most important asset..”. But if human capital truly is an asset, why doesn’t it appear on the balance sheet?
Given the rather intangible character of human capital, HR is often seen more as software rather than hardware. The financial impact of the HR strategy is not measured consistently and most research into this topic is rather academic. So the main question is: how can you pragmatically measure the Return On Investment of your HR policy?”
– CRF Institute –