Scientific Bulletin of Mukachevo State University. Series “Economics”

Vol. 13, No. 2, 2026 25.05.2026 open access Open access

Economic approaches to assessing employee development in organisations

Iryna Shapka

DOI https://doi.org/10.52566/msu-econ2.2026.20 Pages 20 –31 Views 23 Views

Abstract

The relevance of the study is driven by the absence of a unified approach to the economic assessment of employee development, the fragmentation of indicators used, and insufficient alignment between theoretical models and practical management tools. The purpose of the article was to systematise and generalise economic approaches to assessing employee development applied in contemporary research, as well as to substantiate the author’s proposals for improving the economic evaluation of development outcomes. To achieve this purpose, the study analysed the main approaches, methods, and indicators used in assessing employee development, identified research gaps and problematic aspects that limit comprehensive economic analysis. As a result, the article generalised the principal economic approaches to evaluating employee development within the frameworks of labour economics and organisational economics and established their multilevel nature from the individual to the organisational and macroeconomic levels. It was determined that most approaches rely on indicators of labour productivity, costs, performance, and the economic return on investments in employee development. The feasibility of integrating quantitative, analytical, and behavioural indicators into a unified system of economic evaluation has been substantiated, and a structural-logical algorithm as well as an economic-analytical model for managerial decision-making have been developed. The practical testing of the proposed approach, carried out using aggregated data from retail enterprises in Ukraine for 2019-2024, confirmed its effectiveness. Specifically, an increase in labour productivity by 10-14%, an improvement in employees’ professional competencies by 20-25%, a reduction in the adaptation period by more than 30%, and an increase in the return on investment in personnel development by over 60% were observed. At the same time, a decrease in staff turnover by approximately one-quarter and an increase in income per employee by 10-15% were recorded. The results also demonstrated positive trends in industry-level indicators, including growth in labour productivity, the wage fund, and employment levels. The practical significance of the results consists in forming an analytical basis to enhance the soundness of managerial decisions regarding investments in employee development

Keywords

economic evaluation; labour productivity; resource efficiency; investment in development; manage-rial decisions

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Suggested citation

Shapka, I. (2026). Economic approaches to assessing employee development in organisations. Scientific Bulletin of Mukachevo State University. Series “Economics”, 13(2), 20-31. https://doi.org/10.52566/msu-econ2.2026.20