What are the advantages of HR accounting?

What are the advantages of HR accounting?

HRA helps in identifying real cause for high labour turnover at various levels and cause for low return on investment. It provides valuable information to investors. It provides necessary information for manpower planning and personnel policies formation. It increases the morale and motivation of people working in the organization. It also helps in attracting best human resources. It also helps in decision making against transfers, promotion, training and retrenchment of human resources. It helps the employees in improving their performance and bargaining power .It helps in understanding and assessing the inner strength of an organization and helps the management to steer the company well through the most averse circumstances.