Investments in human resource development – a growing concern for organizations

Abstract

In this scientific endeavour, the issue of investments in human resources development is addressed. In the knowledge-based economy, organizations are increasingly concerned with the allocation of financial resources for the vocational training of employees, realizing that they provide them, to some extent, with the comfort needed to meet external challenges. In this context, the opinions of several researchers who analysed the effects of investments in human resource development on organizational performance and competitiveness are presented. It also presents the views of several researchers on investments in on-the-job training, as well as the risks of losing human capital if employees decide to leave the organization. Methodologically, the results of the Questionnaire for Continuing Vocational Training applied in the organizations of the EU Member States were used. In this case, several indicators were analysed: the share of human resources development expenditures in total staff costs, the average cost of training for an employee and the average cost of training for a participant in training programs. The aforementioned indicators are also calculated according to the size of the organization. Also, a comparison is made of some indicators that reflect the investments in vocational training, between the organizations from the Republic of Moldova and those from the EU member states. JEL: J44; L25; M53; DOI: 10.24818/RMCI.2022.1.21