Intelligent remuneration in the knowledge economy for growth of intellectual capital

Abstract

Purpose

The aim of this article is to highlight some characteristics of balancing dimensions for an intelligent remuneration system in the knowledge economy; in other words, what to look for when remunerating sustainable growth of capabilities for future earnings potential (i.e. intellectual capital). The article also aims to present a supplement to the thinking regarding compensation systems.

Design/methodology/approach

The article is based on and refined from a MBA thesis by J. Camp and presents a perspective on intelligent remunerations based on intellectual capital, motivational psychology and knowledge management theory.

Findings

This paper presents some aspects of an intelligent remuneration system for growth of intellectual capital by unleashing a larger potential of the human capital dimensions. In order to enhance mind value‐added by talents, enterprises need to offer their people a more sustainable remuneration on their invested personal human capital, consisting of both tangible and intangible remunerations.

Originality/value

The value of this paper is the perspective of intelligent remunerations based on connected thinking around intellectual capital, psychology and knowledge management. It will add a broadening perspective to the current thinking regarding compensation models in knowledge‐intensive firms. An intelligent remuneration system is a system that nourishes collective organizational learning and continuous renewal.

Citation

Edvinsson, L. and Camp, J. (2005), "Intelligent remuneration in the knowledge economy for growth of intellectual capital", Journal of Human Resource Costing & Accounting, Vol. 9 No. 2, pp. 112-122. https://doi.org/10.1108/14013380510645388