VALUATION OF HUMAN CAPITAL BY THE PRIVATE SECTOR FIRMS IN THE SERVICE INDUSTRY IN SRI LANKA

Abstract

The purpose of the research was to investigate employee perceptions towards human capital valuation and reporting (HCVR) by the private sector firms belong to the service industry. A random sample of 210 employees in managerial capacities of the firms belong to service industry responded to the self-administered questionnaire designed for the study. Analysis of the survey data was conducted using SPSS. It was found that respondents support the need of reporting human capital data in annual reports and agreed that it could have an impact on attracting and retaining employees. Further, employees have concerns over the transparency in reporting human capital value as manipulations would ultimately erode and hinder the rationale for its emergence. Furthermore, findings showed that there are significant differences in perceptions towards HCVR by job level, gender, and tenure in the workplace of the respondents. Overall, the findings led to support for human capital valuation though there are certain concerns over valuation itself.

Key words: Human capital, Human capital valuation, Service industry

For full paper: fmscresearch@sjp.ac.lk