The monetary value of competencies

Author(s)
Robert Böhm, Peter Letmathe, Matthias Schinner
Abstract

Driven by technological transformation, changing competency requirements are receiving increased attention. Technological developments, such as digitization, automation, and cyber-physical systems, will change occupational requirements. Additionally, many companies are already confronted with a shortage of a skilled workforce due to demographic change. Companies can satisfy their demand for skilled labor through training or hiring. Both options are expensive and require careful planning. However, human capital is often neglected in this financial planning process. The aim of the present research is to devise and test a novel tool for companies to better plan the current and future organizational and employee competencies, and to coordinate their human and financial resources. Employing a budget-allocation approach, our exploratory study is based on a survey of 228 human resource and production managers. Respondents provide monetary valuations of competencies required by mechatronics technicians in the face of new technological challenges of smart manufacturing systems. Results show that managers are willing to allocate a relatively high budget to competencies such as complex problem-solving, analytical thinking, and troubleshooting. In addition, domain-based knowledge remains essential and valuable. We also find some differences in the monetary valuation between human resource and production managers.

Organisation(s)
Department of Occupational, Economic and Social Psychology
External organisation(s)
Rheinisch-Westfälische Technische Hochschule Aachen
Journal
Technological Forecasting & Social Change
Volume
189
ISSN
0040-1625
DOI
https://doi.org/10.1016/j.techfore.2023.122331
Publication date
04-2023
Peer reviewed
Yes
Austrian Fields of Science 2012
501021 Social psychology
Keywords
ASJC Scopus subject areas
Management of Technology and Innovation, Business and International Management, Applied Psychology
Portal url
https://ucrisportal.univie.ac.at/en/publications/dcd65c85-b45c-46b6-9cc3-93392db08299