Level of investments in human capital in SMEs as a means of further development and increased competitiveness

This paper analyses the impact of company size on the application of human resources (HR) investments. Data were collected through a questionnaire distributed to 610 SMEs in the Czech Republic. Properly completed questionnaires were obtained from 581 enterprises. The data were evaluated using the Chi-square test of independence, Kolmogorov-Smirnov normality test, Kruskal-Wallis test, and analysis of variance. Research questions were divided into four groups. The first group examined the application of HR investments as a reward, and the second group as a tool for increasing the interest in employment with the company. Another group focused on human capital management (HCM) and its impact on corporate financial performance. The last group dealt with HCM to improve the competitive advantage and the market position of the company. The results show that company size has a significant impact on the application of HC investments. In all groups, large enterprises (150+ employees) make investments to a greater extent than smaller companies. As for sector, the highest rating was recorded for companies operating in logistics and transport. The overall evaluation shows that large companies use the items more often, and no significant differences were recorded between different sectors. The findings may help large enterprises to realize that investment in human capital is long-term, increases competitiveness, and generates indirect returns. Small enterprises can also make investments in human capital, although to a limited extent, and it is not advisable to totally avoid such investments. The limitations are in the selected research method, the number of questions and respondents.