Personnel costs management in banking-case of the Macedonian banking sector
Personnel costs management in banking-case of the Macedonian banking sector

Summary/Abstract: The overall development and outcomes of business entities are primarily dependent on the adequate principles of human resource management. This presents the main reason for the classification of staff costs as one of the most specific expenditure categories in modern and dynamic business environment. As successful personnel costs management could be identified an optimal balance establishment between the shareholders, management and employees interests, in order to reach long-term stability, growth and sustainable development of commercial banks. The identification of the key variables that affect the personal costs as an expenditure category, leads to improved analysis on banking institutions and consequently to more accurate management decisions and actions. In the research study on the case of banking sector in Macedonia, was found that the share of personnel costs in the category of non-interest expenses depends on: capital adequacy ratio, rate of capital and reserves in total assets, share of highly liquid assets in total assets, as well as the business results presented through profitability indicators ROAE and ROAA. However the results may vary if the tests are performed on different groups of banks as well as on the individual bank institutions level. Adopted to the specific features of individual banks and combined with other banking models, this model could be a useful additional analytical tool in bank management information systems.

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