Human Resource Investment Decisions and Financial Performance: A Case Analysis of Singaporean Companies

Abstract

This paper explores the relationship between human resource (HR) investment decisions and financial performance in Singaporean companies, with a focus on real-world case studies. By analyzing the HR strategies of three prominent companies—Singtel, DBS Bank, and Singapore Airlines—the study highlights how HR investments in leadership development, employee well-being, and talent management contribute to financial success. The paper adopts a qualitative approach, utilizing company reports and public data to assess the impact of these HR practices. Key findings demonstrate that strategic HR investments aligned with organizational goals improve productivity, profitability, and resilience in the face of external challenges. The research also discusses the importance of measuring HR’s return on investment (ROI) and calls for a closer partnership between HR and finance departments. While econometrics is mentioned as a potential tool for future research, this paper relies on qualitative insights to provide actionable recommendations for companies looking to enhance their HR strategies. The study concludes by emphasizing the need for flexible, data-driven HR policies and further empirical research to strengthen the understanding of HR’s role in organizational financial performance.