Abstract

To assess the human capital (HC) effectiveness on the operational results of a major Brazilian retail bank (Bank), a HC inventory of the Bank’s employees with information on 25 attributes of HC and six operational performance measures of the Bank in the period of 2006-2008 is used. Thus, this study relies on proven information of all the Bank’s staff and not on surveys as often used in the literature. The empirical results show that the effectiveness of the HC is related to the establishment of an optimal construct of HC attributes and to the improvement of specific skills. Furthermore, the turnover has a negative impact in maintaining high HC employees into the branches with negative effects on the credit control process and the Bank’s profitability. Lastly, the staff size into the branches as well as the economic conditions surrounding them play also an important role for the HC effectiveness.

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