May 16, 2005

Do you know what your Human Capital is worth?



Infosys says that it does. Using the Lev and Schwartz model it has come to the conclusion that its total Human Capital is worth $ 6.4 billion. The report expands that:

The 36,750 employees of India’s second largest software exporter have been
valued at Rs 28,334 crore (US $6.4 billion), while its software professionals
numbering 34,747 are valued at Rs 26,550 crore. The remaining 2,003 supporting
staff have been valued at Rs 1,784 crore, Infosys said in its 2004-05 annual
report filed with the US Securities and Exchange Commission

5 comments:

  1. Sound's bit interesting, how they evaluated the Human Capital. I'm not management guy but that makes me to think and read about this model.

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  2. Hi Vishal

    the Lev and Schwartz model is essentially the discounted future compensation model – where the value of an employee is the present worth of their remaining earnings from employment, and the replacement cost method, where ‘costs incurred by recruiting, selecting, compensating, and training employees reflect the expected value of successful job performance’

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  3. hi

    read ur article.
    can u please tell me more about the model and the process undertaken in valuation of the human resource

    nimish

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  4. If i get this right, the lower your cost of human capital the better your company is in managing attrition?

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  5. Though a bit late, but this model assumes that the cost of the employees = value derived from the employees...Is this a corrolory of Price= Price ????????

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