Do Human Resources have more Value than the Cost incurred on them by the Organisation? An Empirical Analysis of Infosys Ltd. using Contribution-Based Model
Keywords:Human Resource Accounting, Employee Contribution, Service Sector, Cost of Employees, Value of Employees
Employees always play an important role in the service sector. For this study, we have selected Infosys Ltd. as a leading company in the IT sector. The study’s objective is to analyze the expenditure incurred by Infosys Ltd. on their employees and the value of employees’ contribution to Infosys Ltd. using the Human Resources Information System (HRIS), a contribution-based model that consists of 13 variables. Out of the 13 variables, 09 variables are monetary. We have collected data from the latest financial reports of Infosys Ltd. and the Reserve Bank of India’s database for eight monetary variables. Four out of 13 variables are non-monetary for which data have been collected with the help of a standardized questionnaire using 5 points Likert scale. Based on the responses received from 119 employees of Infosys Ltd. and by analyzing data we conclude at both the individual and organization levels that there is a difference between the expenditure incurred by Infosys Ltd. on their employees in total and the Value of all employees’ contribution as an individual and as a group towards Infosys Ltd. This means that the employees’ contributions both individually and collectively are much more than the cost incurred by the organization.