Lower compensation levels decrease human capital value. In practice, it manifests itself in the parents’
difficulties in ensuring the same level of education for their children. A compensation system based on human
capital measurement requires individualised knowledge about employees’ competences. Information on
education and experience is essential in setting the level of fixed compensation components. It is useful to refer
to several examples of base compensation. Table 1 presents the calculations of human capital for selected
workers and the corresponding amounts of compensation. Human capital measurement is a key component of
compensation systems.