Date of Award

Summer 2020

Document Type

Open Access Dissertation

Department

Moore School of Business

First Advisor

Robert Ployhart

Abstract

The concept of value is central to the strategic human resources (SHRM) and strategic human capital resource literatures (SHCR) because of their grounding in Resource Based Theory (RBT). In order to facilitate a firm’s competitive advantage, both the SHRM and SHCR literatures argue that the practices and people in a firm must work together to generate resources that are valuable, rare, inimitable, and non-substitutable. Value is the first and primary consideration in this logic. Despite the centrality of value in both literatures, prior attempts to identify and measure human capital resource (HCR) value (e.g. utility analysis) have produced mixed results at best. This oversight is problematic because it prevents a thorough understanding of how people, one of a firm’s most important assets, contribute to the competitive advantage of firms. Therefore, the purpose of this study is four-fold. First, I explore the concept of employee value as a unique construct which has inherent theoretical value in the SHRM and SHRC literatures. Second, I draw upon the customer lifetime value (CLV) literature in marketing to propose a robust framework in which to create employee financial valuations models (EFVal). Third, I test the EFVal framework by comparing and contrasting its performance with utility analysis on a sample of 4,196 employees nested in 34 units of a large U.S. communications company. Lastly, I discuss the practical and theoretical implications of EFVal models in the SHRM and SHCR literature.

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