HUMAN CAPITAL MANAGEMENT AS A FACTOR IN ENSURING CORPORATE VALUE CREATION

The primary objective of the company in modern financial management is to grow the wealth of its shareholders. Effective human capital management provides the corporation with motivated and qualified personnel who can work to achieve the goals of the firm. Although human resources are such an important component of sustainable value creation, they are subject to challenges, including changing working environments, human factors such as heuristics, fatigue, employee turnover, high training costs, and low motivation, necessitating a more all-encompassing HRM strategy. The article explores the role of human capital management in value creation and suggests ways to effectively manage human capital to achieve this goal. The article reviews scholarly literature and uses a comparative analysis of the various aspects of HRM that are critical to corporate value creation. The author concludes that in order to align the HRM function with the goal of increasing corporate value, a SWOT analysis must be conducted to establish the strengths and weaknesses of the competencies and skills available in the organization. In addition, it is necessary to implement a strategy for employee retention; and an open work environment should be created (where employees can declare their career ambitions and the company can guide them to achieve them). The company should have an objective remuneration and motivation system based on KPIs, which, on the one hand, helps employees realize their career goals and, on the other hand, ensures the achievement of corporate goals.

value creation, human capital, skills development, workforce, corporate finance, staff training, competitiveness, human capital management system, HRM, KPI

Njoroge P. K. Human capital management as a factor in ensuring corporate value creation. Business. Education. Law, 2023, no. 1, pp. 125—130. DOI: 10.25683/VOLBI.2023.62.551.