I'm doing research on human capital investment. The cost incurred in developing HR is treated as an investment, but salary and wage are not a part of the investment. Why? salry is in competitive nature and it is depends on their skills, that mean salary can also be an investment to retain employee, get productive work.
this is my thinking what you suggest or contribute to this.
From India, Bengaluru
this is my thinking what you suggest or contribute to this.
From India, Bengaluru
Only tangible part of investments will be accounted as investment. The skill is not visible and is not tangible. But both these are Capital only. In order to make the capital to run and produce something which has value, we need to fuel it, spend a lot on repairs and maintenance, periodical updation (in software or technology) and these are costs only. In the similar way, we need to fuel the human capital by paying wages, allowances, spend a lot to enhance the skills by way of training, make the HR more and more engaged. Hence, the cost of wages, cost of training, cost of making the HR more effective are also costs to generate an end revenue. In another way, if the capital is paid interest as reward for giving the service as a factor of production, the labour is paid wages. Both are costs only.
From India, Kannur
4293From India, Kannur
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