Human Capital Costs in the Context of Coronavirus Crisis

Abstract

Human capital is an important motor of business performance. In this context, the costs of human capital that the company spends in its efforts to ensure the development and achieve growth in its performance play an important role. However, in times of crisis and decline of production, labor costs that cannot be eliminated become unproductive. The sensitive area is especially area of the wage costs that the company has to pay to employees and thus they represent not only the loss for the company but also the cash outflow. The article maps the influence of this factor on individual branches of the Slovak economy. Using data on the volume of wages paid and estimates of scenarios for the possible development of the coronavirus crisis, it identifies the most vulnerable sectors in terms of unproductive labor costs.