What Makes Employees Productive and Have High Performance? Human Capital Investment in Universities

Abstract

The study describes the evaluation results concerning the improvement of the education levels among the employees of a university in Indonesia by making an investment in education. The study is aimed at investigating the employees’ productivity and performance after making an investment in education. This study with evaluation method using discrepancy model. The sample of the study consisted of 255  non-academic university employees. Data were collected by way of a questionnaire on Guttmann scale. The questionnaire was validated by using logical and empirical validation by a Pearson correlation technique and reliability by KR-20 technique. The data analysis with descriptive. To calculate the capital human investment, the human capital investment formula was used for finding payback period, benefit/cost ration, return-on-investment, net-present-value, and internal-rate-of-return. The results of the study showed that the employees who made human capital investment in education were able to increase their productivity and performance as their insights, knowledge, and skills improved. The research findings were able to give insights to leaders in high-level institutions or government institutions that investing in education is truly essential, needs more attention, and needs to be done by employees.