Human Capital
valuation_human_capitalCalculates assembled workforce value via replacement cost, training, and attrition, and key-person value from revenue contribution and departure risk. Select method accordingly.
Instructions
Human capital: assembled-workforce value by replacement cost and key-person value from revenue contribution and departure risk. Method selects the formula. Use for assembled workforce and key-person intangibles; assembled_workforce nets training and attrition into a replacement cost. For customer-related assets use valuation_customer; for technology assets use valuation_technology. Per method: assembled_workforce needs employee_count + avg_replacement_cost + training_cost + productivity_factor + attrition_rate; key_person needs revenue_contribution + replacement_cost + departure_probability + discount_rate. attrition_rate is in [0,1]; productivity_factor scales the replacement cost (1.0 = parity). Only method is required; all other parameters are method-dependent — supply those the selected method names and omit the rest (defaults apply where defined). Rates and premiums are decimals (0.10 = 10%). Pure arithmetic: no I/O and no external calls, rounded to 2 decimals; parameters belonging to other methods are accepted and ignored. An unknown method, or a missing method-required parameter, returns an error instead of a value.
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| method | Yes | Formula to apply. Options: assembled_workforce = Replacement cost including training, net of attrition.; key_person = Revenue contribution and replacement cost under departure risk. | |
| discount_rate | No | Per-period discount rate as a decimal (0.10 = 10%). | |
| training_cost | No | Training cost per employee, in currency units. | |
| attrition_rate | No | Annual attrition rate, in [0,1]. | |
| employee_count | No | Number of employees (integer ≥ 0). | |
| replacement_cost | No | Cost to replace the key person, in currency units. | |
| productivity_factor | No | Productivity factor on replacement cost (1.0 = parity). | |
| avg_replacement_cost | No | Average cost to replace one employee, in currency units. | |
| revenue_contribution | No | Annual revenue contribution, in currency units. | |
| departure_probability | No | Annual probability the key person departs, in [0,1]. |
Output Schema
| Name | Required | Description | Default |
|---|---|---|---|
| error | No | Error message when the call fails. | |
| steps | No | Intermediate calculation steps for traceability (one string per step). | |
| value | Yes | Computed valuation, rate, or metric. | |
| method | No | Formula / method name that produced the result. | |
| assumptions | No | Modelling assumptions applied (list of strings or key/value object). | |
| defaults_applied | No | Optional parameters that were not supplied, so their documented defaults were used. | |
| formula_reference | No | Mathematical formula or reference applied. |