International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

The Impact of Investments in Human Resources Activities on the Effectiveness of Investment in Human Capital: The Case of Commercial Banks in Jordan
Muna Al-Ghazawi

The purpose of this study is to measure the impact of investment in human resources activities on the effectiveness of investment in human capital and investigated the relationship between human capital Investment and its effectiveness in commercial banks in Jordan A model which included independent variables: Staffing, Training & Development, Incentives, and Retention policy, also dependent variables: Human Capital Value Added (HCVA), Human Capital Return on Investment (HCROI), and Turnover Rate. Findings revealed that there is a significant impact on staffing, training & development, incentives, and retention policy on the effectiveness of investment in human capital. and there is a direct impact from both training & development and employee incentives system on the human capital return on investment and human capital value added. The study also revealed that there is a direct impact from retention policies on the turnover rate. The study recomand to empower human resources management with the tools and techniques needed to improve their role and impact on the overall performance of the banks. And establish a human resources information system to build an effective and accurate data for decision makers.

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