Analysis on the Relationship between Strategic Human Capital Allocation and Operating Performance
This paper, mainly from the viewpoint of human capital allocation, explores the operating performance of accounting firms (hereinafter referred to as firms) industry in Taiwan. The research method adopts multiple regression analysis; the dependent variables are the total number of implemented business, the total revenue of implemented business, the net revenue and the employee’s productivity as the operating performance measurement indices, and to explore the important factors affecting the four performance indices. The independent variables include the employee education concentration, the duties-assigned concentration of professional services personnel, the employee age concentration, the human capital leverage, and the employee benefits; the business client concentration, the firm age, and the firm size are taken as the control variables. This paper tries to find out the important human capital allocation factors influencing firms’ operating performance. The results of this paper show that except that the duties-assigned concentration of professional services personnel has a significant and negative influence on the total number of implemented business, the employee age concentration has a significant and negative influence on the total number of implemented business and total revenue of implemented business, as well as the human capital leverage has a significant and negative influence on the employee’s productivity; the remaining independent variables have a significant influence on the four dependent variables. The results imply that when an accounting firm has higher employee education concentration, higher human capital leverage, and better employee benefits, its operating performance will be better. Besides, on the control variables, lower business client concentration, longer firm age, and larger firm size, its operating performance will also be better. The results of this paper can be used as a human capital allocation reference for firms’ managers; it can formulate comprehensive human capital management strategy, and hope to provide positive helps to firms’ business operations and operating performance.