Formation of Indicators for Assessing the Effectiveness of the Use of Human Capital in the Food Industry

Abstract

Introduction. No standard methodological approach has yet been developed for an objective assessment of the value of the human resource from the position of its effect on the results of the related industry. Food industry is a strategically important branch of the National Economy. It has its specific requirements for labor resources, which can be used as indicators of their effective use in the production process. The on-going transformation of the food industry structure requires customization of such indicators. The present research objective was to form a group of indicators to assess the efficiency of the use of human capital in food industry. Study objects and methods. Food industry ensures domestic food security and provides the rational use of all resources in the production process. The research featured indicators of human capital assessment adopted in international financial reporting, as well as methods of statistical and mathematical data analysis. Results and discussion. The present article introduces a new methodological approach to determine the impact of human capital on the socio-economic efficiency of a food industry enterprise. The calculation of the integrated human capital index was based on statistical indicators of demand and the intellectual component in the industry, e.g. indices of employment, education, and industrial production. According to the proposed approach, the indicative function was performed by an integrated indicator of socio-economic development, which included indices reduced to a comparable form. The indices reflected the ecological, economic, and social efficiency of food production. The method was tested at a local cereal-producing company. An average increase in costs for the development of human capital by 1% increased the indicators of the socio-economic development from 4 to 5%. The objectivity of the assessment depended on the provision of a given level of human capital development and the choice of target criteria for the development of the food industry. Conclusion. The proposed method can facilitate labor management decisions in food industry. The list of indicators can be expanded in accordance with the objectives and installations of scientific research.

Keywords

• human capital
• food industry
• indicators
• production
• socio-economic efficiency
• stability