The Measurement of Human Capital as a Method of Improving the Remuneration System of the Organization

WOJCIECH KOZIOL

Abstract


Contemporary science and business practice in the field of remuneration management includes many concepts and models of the remuneration systems and many definitions of the salary components. Despite this rich achievement, many basic concepts related to salaries are not clearly defined, therefore organizational payroll systems arise as a result of the compromise. Most often it is a compromise between the expectations of employees and the financial capacity of the employer or as a result of interaction between the market forces, supply and demand. Depending on the circumstances, there is a risk of distortions resulting in low or high salaries or an incorrect pay relationship in the organization. As a result, the welfare of the employees is reduced or the employer's financial balance is damaged. The aim of the article is to present the method of human capital measurement as a tool to improve the remuneration system in the organization in the context of empirical research. This method allows an objective measurement in monetary units the necessary qualifications of the employees to perform work on most traditional jobs. As a result, it is possible to provide a pay standard for such a job. The supplement to the considerations is to provide an example application of the described model to several selected workplaces and a comparison with the existing solution in the company.

Keywords


remuneration management, human capital, payroll systemsText


DOI
10.12783/dtssehs/ise2018/33646

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