THE ACTUAL WORTH OF EMPLOYEES

Immaterial value accounts for around 80 percent of the total value of any company. Such value includes everything that is intangible: patents, trademarks, copyrights, brand, client relationship. Also, all intellectual capital is created by employees. Trying to compare what we have invested in our employee and got in return is a very demanding task. Performance measurement and measuring instruments in organisations were developed throughout 20th century, mostly in manufacturing companies. Times have changed, circumstances even more. Method of measurement has to change. Most often, companies tend to measure return on invested capital – ROIC,ratherthan the employee’scontribution to a company