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Economic Perspectives and Trends

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ArticleOpen Access http://dx.doi.org/10.26855/ept.2025.12.003

Study on Value Quantification of Human Resource Management in Small and Medium-sized Enterprises from the Perspective of Human Capital Accounting

Yiran Ma

Master of Human Resource Management and Accounting, University of New South Wales, Sydney NSW 2052, Australia.

*Corresponding author: Yiran Ma

Published: November 14,2025

Abstract

Against the dual backdrop of the digital economy and the transformation of Small and Medium-sized Enterprises (SMEs), the “hidden value” of Human Resource Management (HRM) has become a key bottleneck restricting SME development. Combining Human Capital Accounting (HCA) theory and Strategic HRM, this paper focuses on “value quantification” and explores the correlation between HRM activities and corporate financial value via literature review and SME case analysis. The study finds that SMEs can convert HRM activities (recruitment, training, retention) into calculable financial indicators through a three-stage framework of “cost accumulation—value conversion—performance connection”; lightweight digital tools are crucial to addressing “data silos and inefficient calculation”. This paper provides practical solutions for SMEs to demonstrate HRM value using accounting logic and supplements empirical references for HRM-accounting interdisciplinary micro-research.

Keywords

Human Capital Accounting; Small and Medium-sized Enterprises (SMEs); Human Resource Management (HRM); Value Quantification; Lightweight Digitization

References

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Cooper, R., & Kaplan, R. S. (2021). Cost and effect: Using integrated cost systems to drive profitability and performance. Harvard Business School Press.

Flamholtz, E. G. (2020). Human resource accounting: Advances in concepts, methods and applications. Jossey-Bass.

Li, J. (2024). Application of activity-based costing in HR cost accounting of SMEs. Friends of Accounting, (3), 89-92.

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How to cite this paper

Study on Value Quantification of Human Resource Management in Small and Medium-sized Enterprises from the Perspective of Human Capital Accounting

How to cite this paper: Yiran Ma. (2025) Study on Value Quantification of Human Resource Management in Small and Medium-sized Enterprises from the Perspective of Human Capital Accounting. Economic Perspectives and Trends2(2), 64-67.

DOI: http://dx.doi.org/10.26855/ept.2025.12.003