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Financial Perspectives on Human Capital: Building Sustainable HR Strategies

Author

Listed:
  • Mirabela-Constanța Matei

    (Department of Management-Marketing, Faculty of Economic Sciences, University of Oradea, 410087 Oradea, Romania)

  • Leonard-Călin Abrudan

    (Department of International Business, Faculty of Economic Sciences, University of Oradea, 410087 Oradea, Romania)

  • Maria-Madela Abrudan

    (Department of Management-Marketing, Faculty of Economic Sciences, University of Oradea, 410087 Oradea, Romania)

Abstract

This paper examines the challenges surrounding sustainable human resources management (HRM), particularly in the context of budget constraints that often lead to the reduction of employee development investments. Our research focuses on developing a comprehensive model that integrates financial management tools into HRM strategies, ensuring the prioritization of sustainable practices. Through a systematic analysis of existing knowledge, we propose a solution-oriented approach that supports the financial substantiation of investments in employee development. This study addresses key research questions, emphasizing the adaptation of corporate finance tools to meet HR’s specific requirements. Our research not only identifies challenges but, more importantly, offers solutions by presenting a model that empowers organizations to align financial goals with HR development objectives. The results of our research aim to formulate a pragmatic and inventive model, offering a systematic framework for assessing the financial feasibility of initiatives in human resources development. Our model offers a practical framework for assessing the financial feasibility of HR development initiatives, facilitating informed decision-making and the promotion of sustainable HRM practices.

Suggested Citation

  • Mirabela-Constanța Matei & Leonard-Călin Abrudan & Maria-Madela Abrudan, 2024. "Financial Perspectives on Human Capital: Building Sustainable HR Strategies," Sustainability, MDPI, vol. 16(4), pages 1-18, February.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:4:p:1441-:d:1335876
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    References listed on IDEAS

    as
    1. Jangwoo Lee & Danny Miller, 1999. "People matter: commitment to employees, strategy and performance in Korean firms," Strategic Management Journal, Wiley Blackwell, vol. 20(6), pages 579-593, June.
    2. Ken Kamoche, 1996. "Strategic Human Resource Management Within A Resource‐Capability View Of The Firm," Journal of Management Studies, Wiley Blackwell, vol. 33(2), pages 213-233, March.
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