ECONOMIC EFFICIENCY OF INVESTMENTS INTO PERSONNEL DEVELOPMENT OF ENTERPRISES

Olena Kakhovska (), Tetiana Lositska () and Katerina Kolesnikova ()
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Olena Kakhovska: Department of Accounting, Economics and Human Resources Management of Enterprise, Prydniprovska State Academy of the Civil Engineering and Architecture, Ukraine
Tetiana Lositska: Scientific Research Department, Kyiv National University of Trade and Economics, Ukraine
Katerina Kolesnikova: Department of Applied Economics, Odessa Institute of Trade and Economics of Kyiv National University of Trade and Economics, Ukraine

Baltic Journal of Economic Studies, 2018, vol. 4, issue 3

Abstract: The purpose of the article is the research of further improvement of investment process into personnel of the enterprises, using modern methods and tools, which are put into practice, for an increase in resulting economic effects of enterprise’s activity. A key element in the functioning of companies is a balanced management system, so improving the effectiveness of investing in human capital should be considered by management as a priority. Therefore, it is important to improve the process of investing in personnel, using modern methods and tools that improve the efficiency of the company. Results. The structure of human capital is disclosed, which can be represented as a set of such components as health; competence; technical and special skills, which include the costs of continuing education, remuneration, other benefits and compensation. Problems that restrain investment of investments in personnel and tasks of personnel development policies are highlighted, the main one of which is maximizing the return on investment in employees. Practical implications. A motivating factor is an investment in planning and career motivation, which allows achieving a balance between the interests of the enterprise and the employee on the basis of principles: scientific, fairness, observance of labour legislation, efficiency, consistency. The definition of the economic efficiency of staff development in general form consists of three consecutive stages: the definition of the cost structure and their valuation; the definition of the structure of results and their valuation; comparison of the calculated values of costs and results reduced to one point in time. Value/originality. Management of investments aimed at the development of human capital will increase not only the effectiveness of the realization of human potential but also the efficiency of the use of all tangible and intangible assets of the enterprise.

Keywords: investments in personnel development; investment efficiency; evaluation of investment efficiency in personnel; social aspect of investing in company personnel (search for similar items in EconPapers)
JEL-codes: D25 J24 M12 M53 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:bal:journl:2256-0742:2018:4:3:17

DOI: 10.30525/2256-0742/2018-4-3-115-122

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