Journal Press India^®

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This study redefines Human Resource Accounting (HRA) by integrating quality metrics of human resources (HRs) into traditional Cost Model frameworks, advancing beyond financial quantification to capture the broader value of HRs to organizations. While conventional HRA models primarily focus on measuring costs associated with recruitment, training, and retention, this study advocates for the inclusion of quality metrics—such as employee education, experience, regularity for work, efficiency, etc.—to present a holistic view of human capital’s value. This study demonstrates that incorporating quality metrics significantly enriches the precision and relevance of HRA frameworks. By accounting for the qualities of HRs, these metrics deepen insights into human capital’s true value. The findings suggest that this integrative approach fosters a strategic perspective on HRs as assets. This enriched model supports more informed decisions in HR investments, positioning HRA as a crucial tool for bridging human capital with organizational performance. The redefined HRA framework thus offers both practitioners and scholars an enhanced methodology for capturing the value of HRs.

Keywords

Cost model innovation; Employee quality metrics integration; HR valuation framework; Human resource accounting; Intangible assets

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