Workforce 'most valuable asset'
13 Dec 2005By REBECCA TORR
A GLOBAL initiative that calls for employees to be viewed as investments, not expenses, was launched at a business conference that opened in Bahrain yesterday. The Arab Society of Certified Accountants Founder and President, Talal Abu-Ghazaleh, said the society would push for a rethink on the way companies view their staff.
The society wants human resources development to be considered differently in company accounts.
Mr. Abu-Ghazaleh said that globally there is no standard to measure investment in HRD and, because of this, it could not be reported as an investment in financial statements.
However, he said the training and development of employees must be considered as an investment, not an expense, because they are assets that contribute towards productivity.
"In our company, our only asset is human resources," said Mr. Abu-Ghazaleh, who is also Founder and Chairman of Talal Abu-Ghazaleh Organization, Jordan.
"But this investment doesn't show. On the balance sheet, it is shown as an expense.
"When you invest in a building you capitalize it, but when you invest in human beings it is not capitalized.
"This must change so we can encourage more investment.
"We need to be able to see if we are investing enough in career planning, capacity building, recruitment, and so on."
Mr. Abu-Ghazaleh was the keynote speaker at a three-day business conference, which opened at Al Bander Hotel and Resort, Sitra, yesterday.
The Third International Training, Management and Human Resources Development Conference (HRD 2005) examines Measuring Organizational Success Through Human Capital.
More than 350 people from Bahrain and the GCC are attending HRD 2005, which is being held under the patronage of Minister of State and National Oil and Gas Authority Chairman Dr. Abdulhussain Mirza.
More than 20 regional and international training, management, and HRD experts are speaking at the conference.
Mr. Abu-Ghazaleh said five to 10 per cent of his company's gross revenue, which was around 50 per cent of the profits, was spent on training and development.
"Companies that flourish are those that invest in their people," he said.
"More recognition should be given to those organizations that invest in people, but at the moment I can't reward companies because there is no measurement for it.
"We must have a prize for organizations that invest in HRD."
By measuring HRD investment, he said companies could show employees how much was being invested in them.
An important part of measuring HRD investment was also to evaluate employee performance and to reward them, he added.
Mr. Abu-Ghazaleh said the three areas that needed to be addressed were how to measure investment in human resources, how to present the investment in a financial statement, and how to amortize the investment.
Resources
He said the society would address these issues at a global conference to be held in Bahrain next year.
Commenting on the launch of the initiative, Dr. Mirza said he fully supported it and was looking forward to the conference.
"He (Mr. Abu-Ghazaleh) is a leader of change and has been challenging the status quo all his life," said Dr. Mirza.
"I'm very pleased he has a novel ideal of measuring human capital and putting it on a balance sheet.
"I'm happy he is organizing an international conference in Bahrain and addressing this issue forcefully."
Today's keynote speaker at the conference is GPIC General Manager Abdulrahman Jawahery, while tomorrow's will be Accor Middle East, France Corporate Director Dr. Denis Sorin.
The closing address will be given by Ohio State University Workforce Development and Education Professor and Centre on Education and Training for Employment Interim Director Professor Ronald Jacobs.
In addition to the main talks, the conference features interactive panel discussions, dinner talks, and business and professional visits to Bahrain Airport Services, GPIC, and Asry. To register on the day, or for more information, contact organizers CTM Event Management on 17535818.
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