TY - JOUR

T1 - The monetary value of competencies

T2 - A novel method and case study in smart manufacturing

AU - Böhm, Robert

AU - Letmathe, Peter

AU - Schinner, Matthias

N1 - Publisher Copyright: © 2023 Elsevier Inc.

PY - 2023/4

Y1 - 2023/4

N2 - 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.

AB - 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.

KW - Competency management

KW - Employee selection

KW - Human capital

KW - Smart manufacturing

KW - Training

U2 - 10.1016/j.techfore.2023.122331

DO - 10.1016/j.techfore.2023.122331

M3 - Journal article

AN - SCOPUS:85148325795

VL - 189

JO - Technological Forecasting and Social Change

JF - Technological Forecasting and Social Change

SN - 0040-1625

M1 - 122331

ER -