Chapter 24
Human capital value added (HCVA)
- Why: To better understand the financial value employees are generating
- What: To measure the financial contribution each employee makes to the organisation
- When: When companies and shareholders want to understand the financial contribution per employee
- The question this indicator helps you to answer: to what extent are our employees adding value to the bottom line?
Why does this KPI matter?
In many businesses, employees are not only the most important assets and key enablers of future success but often the biggest expense (or rather investment). It is therefore important to understand to what extent employees add value to the financial performance of the organisation. Employees are often a missing ...
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