Human Resource Valuation is not a new issue in the arena of business. It is true that knowledge is a key determinant of economic and business success, but most companies focus on ‘Return on investment (ROI)’, with very few concrete steps taken to tract ‘Return on Knowledge’. However, what is needed in this concept is a measurement of the abilities of all employees in a company, at any level, to produce value from their knowledge and capability. The concept of human resource valuation can basically examine from two dimensions: the investment in human resources and the value of human resources. The expenditure incurred for creating increasing and updating the human resource quality is known as investment in human resources. Such investment yields fruitful results like higher productivity and higher income to the organization. The yield that the investment in human resources generates will be considered as the basis of human resource value.

KEYWORDS: Human Resource Valuation, Return on Investment & Knowledge, Investment Yields.