The theoretical value of understanding HRM’s financial value

Abstract

Abstract Although the paper by Joo et al. (2022) purports to demonstrate the value of acquiring star performers, we argue that the value of their paper lies more in the demonstration of the use of utility analysis as strong theory, implemented with computational modeling. We articulate why we see the Joo et al. (2022) paper contributing to a strong theory about employee value and how its efforts represent more of a theoretical contribution to the star performers, employee value, employee performance, and utility analysis literatures than one simply about the specific returns on investment related to acquiring star employees. Our commentary explains our view of their contribution and develops new questions and directions for future research that this perspective implies.