Modeling Human Capital Value: A New Formula for Evaluating Professional Potential

Human capital is a key determinant of an organization’s success, yet its assessment is often subjective and difficult to quantify. In this study, we present a mathematical model that objectively measures an individual’s added valuewithin a company by integrating knowledge (C), skills (H), attitude (A), and communication ability (Co).

Inspired by Víctor Küppers’ formula, we have expanded its scope to more accurately reflect the influence of intangible factors on professional performance. Our new equation:

V = (K + S) × (A + Ca)²

incorporates communication as a key element and applies a quadratic factor to model the exponential impact of soft skills.

To ensure objective comparisons between individuals, we developed a normalized index within the range [0,1], facilitating its application in talent management and organizational decision-making. Through case studies, we demonstrate that professionals with higher attitude and communication skills can generate a significantly greater impact, even when their technical knowledge and skills are similar to those of other profiles. This reinforces the idea that while technical expertise is essential, attitude and communication are success multipliers.

This model offers practical applications in performance evaluation, talent selection, and career development planning. Additionally, it opens new research avenues, such as incorporating emotional intelligence and resilienceto further refine the measurement of human value in the workplace.

For more details on the methodology and experimental validation, you can access the full article on SSRN.

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