Assessing the Financial Impact of Strategic HR Metrics on Economic Value Added (EVA): A Quantitative Study in the Management Service Sector

Strategic human resource (HR) metrics, such as employee engagement, training effectiveness, turnover rates, and recruitment efficiency, have been recognized as key drivers of organizational performance. However, limited empirical evidence exists on their direct financial impact, particularly on Economic Value Added (EVA) in the service sector. This study aimed to quantitatively evaluate the relationship between selected HR metrics and EVA, thereby providing insights into the economic returns of strategic HR practices. A quantitative research design was employed, using secondary financial and HR data from 50 service-sector organizations over a five-year period (2018–2022). EVA was calculated from published financial statements, while HR metrics were obtained from internal HR databases. Multiple regression analysis was conducted to assess the predictive power of HR metrics on EVA, controlling for organizational size and market conditions. Statistical significance was set at p < 0.05. Findings indicated that employee engagement scores (β = 0.42, p < 0.01) and training investment per employee (β = 0.36, p < 0.05) had a significant positive relationship with EVA. Conversely, higher voluntary turnover rates (β = −0.31, p < 0.05) were significantly associated with lower EVA. Recruitment efficiency showed a positive but statistically insignificant effect (β = 0.18, p = 0.08). Collectively, the HR metrics explained 54% of the variance in EVA (R² = 0.54). The study provided empirical evidence that strategic HR metrics have a measurable financial impact on EVA in the service sector. Organizations with higher employee engagement, greater training investments, and lower turnover rates tended to achieve stronger economic value creation. The findings underscore the importance of aligning HR strategies with financial performance objectives to enhance shareholder value.