Human Resource Accounting

Human Resource Accounting (HRA) is a method used in social accounting to quantify the value of an organization’s workforce. It recognizes that employees are valuable assets, not just costs. HRA tracks the investment in human resources, such as training and development, and assesses their contributions to the organization’s success. By valuing people in financial terms, companies can better understand their worth and make informed decisions about hiring, training, and management. Ultimately, HRA aims to highlight the importance of people in driving organizational performance and ensuring sustainable growth.