On 18 and 19 October 2005, representatives of the industry, trade and service sectors met at the European Academic of Otzenhausen for the eleventh time for the Europrofession Forum. As always, the focus of this event was the exchange of information and the discussion of issues and new approaches in staff development.
Up to now, companies have been balancing their fixed and liquid assets, with said fixed assets also including intangible assets such as computer programs but not their intangible colleagues in the field of HR. Staff and management represent an intangible asset which is a key factor in value creation and corporate success. Very few calculations have been made in Germany regarding the economic value of this particular asset, making it difficult for companies to determine the asset’s quantity level or quantify the value of individual employees.
The declared aim (and challenge) is to develop standard, practical evaluation approaches designed to offer a structured representation of intellectual capital and its development, illustrate the connections between corporate goals, business processes and corporate success, and serve as a foundation for strategic decisions within companies.
With this in mind, the experts at the Europrofession Forum did not tackle the question of ‘whether human capital should be evaluated’, but rather ‘how it should be evaluated’. Potential solutions discussed included monetary index-based and report-based evaluation approaches via a status or annual report. In closing statements, experts unanimously advocated the development of a uniform, sound basis for value assessment and a move away from competition between systems.