What challenges HRA faces?

What challenges HRA faces?

HRA faces many issues while calculating the real values of employee to the organization:

a. HRA is based on the assumption that the employees are going to remain with the organization for a specified period. However, this is not true in real scenario as employee mobility is very high.

b. Many times, if the valuation is not done correctly or the results of the valuation are not used properly, HRA may lead to the dehumanization in the organization.

c. There is no scientific and clear guideline for estimation of cost and values of human resources of an organization.

d. There are no universal financial standards for HRA. Every organization has its own standards for it.

e. The behavior of human being is uncertain. So calculating its value is also uncertain.