Our Least Important Asset: Why the Relentless Focus on Finance and Accounting is Bad for Business and Employees

Real wages have stagnated or declined for most workers, job insecurity has increased, and retirement income is uncertain. Why have jobs gotten so much worse?



As Peter Cappelli argues, these issues and others stem from the logic of financial accounting and its fundamental flaws in dealing with human capital. Financial accounting views employee costs as fixed costs that cannot be reduced and fails to account for the costs of bad employees and poor management. The simple goal of today's executi...