The results of the research in selected company can be summarised in the following conclusions:
In the area of management strategy of human resources, the company has developed an effective education system for all levels of management from top management through middle management to the workers, with a priority focus on the customer. Company's objectives in education and development are defined to support the effectiveness of management processes, effectiveness of internal communication, and quality of selling goods and services to end customers. Training of employees is based on the concept of education and development of employees. For each year, funding for education, time table, methods, individual training modules and the exact number of employees to be educated are provided. Employees are educated through external and internal forms. In terms of distance education, we mean intensive training of top employees. This education is provided by external educational institutions. Internal training takes place within the company and is intended for middle management and workers.
In the context of measurable indicators of efficiency of investment in human resources, we analysed the first indicator - wage conditions and business benefits for employees because rewarding employees is part of the process of preserving and maintaining an effective workforce. Company's forms of compensation varied, depending on the employee's working position. Workers were paid on the basis of piece wage, middle management's wages depended on contract wages and top management gained proportionate wage. The employees' wages, based on compliance with the qualification requirements, were classified within one of the 12 categories of wage tariff system. According to the relevant tariff class, employees gain tariff salary determined by the applicable tariff. There is the guarantee that employees are entitled to tariff-based payment, i.e. to the fixed part of the contractual salary and wage advantages irrespective of the overall results of the company. The average monthly wage in 2015 was € 515.88, which is far below the average monthly wage in the Slovak Republic.
Except for wages, employees were entitled to a wide range of financial and nonfinancial benefits in terms of business benefits. This includes special bonuses; personal assessment of employees' failure to report absence from work; additional payments for overtime, for work on public holidays and for work on Saturday and Sunday; the reward for living and working anniversaries; contribution to board; contribution to transport to and from work; contributions to supplementary pension insurance; time off with pay in excess of the labour code; contributions to health care and other recovery workers; contributions to the social and cultural events and company's notebook, cell phone or car for employees whose job requires training and staff development. Further, the employer supported university study by providing study time off and contributions to employees who studied part time at universities, by which the employer shows interest in increasing their employee's skills. This advantage was connected with compulsory employment after finishing school for a selected period of time. Further benefits provided to an employee included social assistance in unpredictable situations in the employee's life.
Although the average monthly wage compared to the average monthly wage in Slovakia is lower, which reduces the attractiveness of the selected enterprise for job seekers, employees are provided with a variety of benefits that motivate them to perform. The monitored company lacks feedback from its employees, which would help to determine whether the benefits act as an incentive to increase employees' performance.
The value of the intellectual capital of the company is closely linked to the increasing or decreasing trends in the number of employees who come into the company and thus increase the value of the intellectual capital. Average monthly income is one indicator of the effectiveness of the investment to employees. Effectiveness indicator is based on the idea that the value of individual employees is determined by wages, i.e. business investment in employees, which is paid to them as the equivalent of work.
The average monthly salary, presented in Table 3, was during the monitored period developing in a variable rate. In 2011, the average monthly wage was € 501.70, but the economic crisis translated itself into a decline to the level of € 485.20 in 2013. The gradual recovery in the economy has increased the company's turnover, which resulted in an increase in the average monthly wage at the level of € 515.88 in 2015. Even though the average monthly salary was less than the average monthly wage in the Slovak Republic, its slight increase might be taken as a promising positive development for the future.
Employee turnover was the third measurable indicator of efficiency of investment in human resources. In Table 4, we examined the turnover of employees within the enterprise, which may not be viewed only as a negative phenomenon. Sometimes, some low turnover rate may be even necessary, as it enables the company to maintain its potential for innovation and growth.
Staff turnover rate in the period 2013–2015 decreased gradually. That indicates a positive development in staff turnover. For companies, it is important to identify the reasons for losing their workers and, therefore, it is of key importance to pay more attention to employees who are considering changing their jobs and to understand their unfulfilled needs and expectations.
On the other hand, reasons for the leaving of employees are often results of the decision of their employer. In the monitored period 2013–2015, it was necessary to terminate the contracts of 20 employees. Another most common reason for leaving the company was inadequate salaries, as reported by workers. We recommend the company to identify the reasons for dissatisfaction of existing staff as well as the reasons of former employees for leaving. That will enable the company to properly identify the reasons for departure and to implement changes in the system of rewarding and motivation of employees that will eventually prevent further loss of human capital.
Labour productivity indicator is an important signal of economic efficiency of a company's performance. The results of the monthly labour productivity from sales and value added (during the monitored period 2013–2015) are shown in Table 5. Monthly indicator of labour productivity from revenues in 2015 had been falling slightly (decrease of € 42.06 compared to 2014) due to the increase in the number of registered employees by seven employees (as a result of hiring new employees). For the same reason, there was an increase in added value only by € 0.31 in 2015, compared to 2014.
The growth of labour productivity is important for the performance of the company because it leads to savings in expenditure of labour and labour costs. We recommend the company to focus on examining the relationship between labour productivity and the system of rewarding in the company, with special emphasis on the needs and particularities of human capital, because it is human capital in the company that is able to create value.
Human capital value added (HCVA) is another important indicator of economic efficiency of human resources in the company, which reflects the participation of employees in added value (when the added value is created by revenue net of costs excluding labour costs - labour costs and employee benefits). It is presented in Table 6.
Human capital value added (HCVA) belongs among the indicators of the overall efficiency of utilisation of human resources. Thus, based on the research results, we may conclude that the analysed company uses its human resources effectively. Nevertheless, we recommend the company to continue using its human resources effectively which will increase the company's performance. It is generally understood that via the abilities, skills and knowledge of its employees, the company can strengthen its competitiveness in the market. Quality technology available does not secure maximum performance because it is the employees who create added value in the company as bearers of human capital, and without employees, no technical achievements could be properly utilised.
In 2015, the company invested a total of € 120,000 in the education and the development of human resources in the form of individual training modules. Financial resources in the amount of € 80,000 were spent on intensive training of top managers, and € 40,000 was invested into intracompany education. This sum included training for middle managers and individual workers. The overall costs per training module were divided by the total number of participants in various target groups. Participation of at least 80% of the employees was a precondition to providing the training programme. Resources for internal training were divided into five training modules. These five modules are presented in Table 7.
After identifying the range of training modules and the number of participating employees, average investment in training and staff development were analysed. The average investment per training module was € 8000, and the average investment per participant was € 266.67. On the basis of research done, we can state that the company has an elaborate system of quality education. Moreover, the company seeks to continuously improve this system and spends quite a considerable sum of money on education of their employees.
Human capital return on investment (HCROI) is a key indicator to measure the profitability, i.e. return on investment in human capital company, and is now considered to be the most used method to measure the effect (return on funds invested in human resources of the company). The results considering this indicator are presented in Table 8.
During the monitored period, the development indicator HCROI was slightly decreasing due to higher labour costs (labour costs and employee benefits), which has caused an increase in the total number of employees. Nevertheless, we can view the results of this indicator positively because the company's investment in human resources each year generated revenues. That means that the investments were profitable and returned. In 2013, the company earned € 1.045 for every euro invested in labour costs. In 2014 the amount was € 1.039, and in 2015 the amount reached € 1.037 for each euro invested in human resources. We can conclude that during the monitored period, funds invested in human resources of the company were effectively recovered.
The company is further advised to regularly monitor the development achievements of HCROI, because the indicator is a key method of measuring a company's human capital. This is mainly because such monitoring answers questions such as how much profit the enterprise will have after consumption cost, how many people are employed, how much to invest in labour costs (wages and benefits) and especially how it can improve the individual variables in order to increase their competitiveness in the market. HCROI allows to increase the performance of the company, as the company expects that the investments in their employees shall be returned in the form of a specific return, even though long-term nature of payback of investments into human capital should also be taken into consideration.
It is important to note that not all of the benefits of investing in human resources are measurable in financial terms. There are also nonfinancial, i.e. qualitative, benefits that characterise improvements in communication, motivation, employee satisfaction, their morale and teamwork, which are also very important to the performance and success of the enterprise, even if their contribution is difficult to quantify. In addition to financial indicators of the efficiency of utilisation of human resources, the analysed company should take into account also noneconomic indicators such as the level of employee satisfaction with company benefits, with the process learning, and their level of motivation. These aspects can encourage people to perform better and are usually determiners intensifying the interest of potential job seekers.
Within quantification nonmeasurable indicators of efficiency of investment in human resources in 2015, we conducted questionnaire research on a sample of employees of the company. Table 9shows the list of those labour and motivation factors identified by employees as the most significant, thus increasing their working efficiency most effectively. Based on the preferences of the respondents, we have compiled a rank of 10 motivation factors that were the most preferred by top and middle management and by workers. Comparison of these two groups was conducted to determine whether, based on the similarity of the responses among various employees, an identical composition of motivation factors could be identified. This finding will enable the company to consider the amount of investment in various areas related to increasing the effectiveness of human resources.
Employees working in top and middle management considered base salary to be the most important motivating factor. They give priority to financial security. Job security and supervisor's approach occupied the second and third place, which indicates that in addition to financial security, these employees also need a sense of security, stability, and background. Supervisor's approach plays an important role in the evaluation of employees. Work-related motivation factors connected with workload, financial evaluation, and social factors influencing the situation and conditions in the workplace occupied lower positions in questionnaires. Although the employees working in top and middle management considered social relationships to be important, they considered them secondary to existential and financial factors. The reason could be that, in the working positions of top and middle management, employees do not tend to build close relations and put more emphasis on themselves and their own careers.
On the other hand, workers attributed the greatest level of importance to interpersonal relations, good teamwork, atmosphere, and communication in the workplace. The reason could be that employees work in teams, know each other, and are used to each other. Workers thus tend more to coherence and values other than just the financial factors and career development. For them, friendly working relationships are the most important. Financial reward and job security were secondary to working relations, perhaps because of the unstable economic situation in the Slovak economy. The superior's approach, recognition, and fair appraisal system based on actual merit were also highly rated among workers.
Surprisingly, training and development was not rated among the most important motivators in none of the observed groups. Employees are probably interested in expanding their knowledge and expertise, and further education is considered a priority. They prefer other mentioned factors to motivate them. On the other hand, within the two groups that were compared, there were the same 10 motivation factors that more or less affected the satisfaction, motivation, and performance of the human resources of the company. Based on the results acquired, we recommend the company, as a part of their overall strategy of investments into human resources, to focus on these motivation factors that enable higher and more effective contribution from investments in human capital.
Quality systems of corporate benefits, declining employee turnover, and the positive developments in the measurable indicators of efficiency of investment in human capital are the strengths of the investment process. All these proved that the analysed company invests in their human resources effectively. Weaknesses of investment in human resources in the analysed company lied in lower average wages of employees compared to the average wage in Slovakia, which can significantly influence the discontent and limited performance of employees. Investments in intracompany education and development appear to be at a relatively high level, but it is necessary to review the division of analysed groups to top management and other training (volume of sources per employee and the effectiveness of their usage). On the other hand, the enterprise has a long and elaborate system of education that is constantly trying to improve it. If the analysed company would focus on business issues that are most important to employees, such as the basic salary and the level of interpersonal relationships, they would provide employees with better working conditions and care. The company also has an opportunity to improve the performance of its human resources, which will ultimately provide benefits to the company in the form of greater efficiency and competitiveness. Risks are associated with a lack of awareness of business benefits system and the possibilities for their further education and development, as well as insufficient level of their satisfaction and motivation to work better, which may adversely affect the overall performance of the company and become a serious disadvantage for the company's competitiveness in the market.
| Indicator/year |
2013 |
2014 |
2015 |
| Number of employees |
170 |
169 |
176 |
| Average monthly wage (in EUR) |
485.20 |
508.94 |
515.88 |
| Average monthly wage in Slovakia (in EUR) |
824.00 |
858.00 |
883.00 |
Table 3. Number of employees and their average wage.
| Indicator/year |
2013 |
2014 |
2015 |
| Total number of employees |
170 |
169 |
176 |
| Number of dismissed employees |
29 |
21 |
19 |
| Development of employee turnover (%) |
16.93 |
12.54 |
10.77 |
| Reasons for dismissal |
| Employee’s decision |
5 |
8 |
7 |
| Medical reasons |
3 |
2 |
1 |
| Other reasons |
21 |
11 |
11 |
Table 4. Development of employee turnover.
| Indicator/year |
2013 |
2014 |
2015 |
| Gains (in EUR) |
10,674,582 |
10,901,848 |
11,264,557 |
| Added value (in EUR) |
1,774,401 |
1,838,133 |
1,914,902 |
| Total number of employees |
170 |
169 |
176 |
| Monthly labour productivity based on revenues (in EUR) |
5232.64 |
5375.66 |
5333.60 |
| Monthly labour productivity based on added value (in EUR) |
869.80 |
906.37 |
906.68 |
Table 5. Development of the indicator of labour productivity.
| No. |
Training models |
No. of people |
Scope of education (hours) |
Module content |
| 1. |
Leadership |
30 |
24 |
Leadership styles, the advantages and disadvantages of different styles |
| 2. |
Marketing |
30 |
7 |
Theory and practice of marketing |
| 3. |
Communication with customer |
30 |
7 |
Communication skills, coping with stress, conflict |
| 4. |
Teamwork |
30 |
16 |
Developmental stages of team building, knowing the differences of individuals and teamwork |
| 5. |
Conflict solving |
30 |
24 |
Coping with stress, conflict with internal and external customers |
Table 6. Development of the human capital value added.
| No. |
Training models |
No. of people |
Scope of education (hours) |
Module content |
| 1. |
Leadership |
30 |
24 |
Leadership styles, the advantages and disadvantages of different styles |
| 2. |
Marketing |
30 |
7 |
Theory and practice of marketing |
| 3. |
Communication with customer |
30 |
7 |
Communication skills, coping with stress, conflict |
| 4. |
Teamwork |
30 |
16 |
Developmental stages of team building, knowing the differences of individuals and teamwork |
| 5. |
Conflict solving |
30 |
24 |
Coping with stress, conflict with internal and external customers |
Table 7. Training modules of intracompany education.
| Indicator/year |
2013 |
2014 |
2015 |
| Operating income (in EUR) |
11,164,318 |
11,412,981 |
11,832,978 |
| Operating expenses (in EUR) |
11,099,868 |
11,353,813 |
11,773,160 |
| Work expenses (in EUR) |
1,447,716 |
1,521,791 |
1,604,130 |
| HCROI (in EUR) |
1.045 |
1.039 |
1.037 |
Table 8. Development of the indicator human capital return on investment.
| Top and middle management |
Workers |
| No. |
Motivation factor |
Mean |
No. |
Motivation factor |
Mean |
| 1. |
Base salary |
4.65 |
1. |
Good teamwork |
4.81 |
| 2. |
Job security |
4.50 |
2. |
Atmosphere in the workplace |
4.77 |
| 3. |
Supervisor’s approach |
4.50 |
3. |
Communication in the workplace |
4.69 |
| 4. |
Good teamwork |
4.34 |
4. |
Base salary |
4.68 |
| 5. |
Working hours |
4.30 |
5. |
Job security |
4.65 |
| 6. |
Fair appraisal system |
4.29 |
6. |
Fringe benefits |
4.60 |
| 7. |
Fringe benefits |
4.27 |
7. |
Supervisor’s approach |
4.60 |
| 8. |
Atmosphere in the workplace |
4.26 |
8. |
Working hours |
4.56 |
| 9. |
Communication in the workplace |
4.16 |
9. |
Fair appraisal system |
4.56 |
| 10. |
Recognition |
4.15 |
10. |
Recognition |
4.55 |
Table 9. Comparison of the most effective motivation factors.