A Study on Professional Service Firms Exploring Human Competence Valuation as an Alternative Approach in Financial Valuation Models

Abstract

This article advocates for valuing human competence alongside traditional financial assets, particularly in Professional Service Firms (PSFs). It proposes a method that emphasizes realism, simplicity, and a focus on human resources. Through a mixed-methods approach involving a literature review, case studies, and surveys, the article demonstrates the potential of human competence valuation to uncover the true drivers of organizational success. While facing challenges such as time consumption and biases, this approach offers valuable insights into employee performance and organizational value, paving the way for a culture of competence-driven performance.