Implementation of the human capital management concept: an empirical study of small trading company

Human capital is represented by people who are carriers of knowledge, ideas and experience that contribute to increasing the performance and competitiveness of the company and the entire society. Human capital management helps companies achieve business goals through efficiency, which includes the effective use of human capital and the effectiveness of investment in it. The article aims to explain the essence of human capital management, offers new metrics for measuring the effectiveness of human capital, and points out a possible approach to implementing human capital management in a specific small trading company. We used the observation method in obtaining data about the trading company, content analysis in the examination of scientific articles and internal documents of the company, synthesis, descriptive statistics, and mathematical methods in the design of metrics for measuring the value of human capital through Excel statistical software, and deduction in the design of generally applicable rules for all types of companies. IBM SPSS software was used for the statistical evaluation of the questionnaire survey. We obtained the basis for making the article through a questionnaire survey, which was carried out in 350 Slovak trading companies. Using a survey, we found that up to 89% of companies do not have a human capital management concept in place and do not use and do not know metrics to measure human capital effectiveness. It is while companies are aware of the impact of investments in human capital on the overall performance and the size of the company´s profit. Based on it, we created metrics to measure the human capital´s value. Thanks to quantitative analysis, we identified KPIs for small business company—sales, profit. We found that external factors also affect the value of human capital. In the analysed company, the improvement of the working environment helped to increase the value of human capital, which also led to higher customer satisfaction. The article fills a gap in the scientific literature because it deals with the issue of implementing the human capital management concept and metrics for measuring the human capital´s value in the company. The theoretical and practical contribution of our contribution also lies in the use of common accounting documents in the quantification of the value of human capital. Companies can be inspired by the article because it provides an overview of the human capital management implementation in a small company, and designed metrics to measure the value of human capital.