HUMAN RESOURCES IMPACT ON THE FINANCIAL SUCCESS IN MANUFACTURING INDUSTRY IN REPUBLIC OF CROATIA

Capital is base for the existence of enterprise, but in global economy the most important capital is human resource. Today business is characterized by virtual economy, intellectual capital, and the knowledge economy. Enterprises that don't have the competence to successfully manage human resources will not have insured sustainable development. Enterprises in Croatia don't have enough developed concept of human resources strategy and their impact on financial strategy. Croatia is one of the few countries that's still affected by the global economic crisis, that occurred after collapse of the market in 2008. Today's economy is characterized by a large number of companies that operate badly, many of them were liquidated, the scale of unemployment is growing steadily, the level of high educated people is low, macroeconomic indicators are not satisfactory, etc. One of rare industries with permanent growth and successful financial indicators is manufacturing industry. The aim of this paper is to present the implications and impacts of human resource strategy on the financial success of enterprises in the manufacturing industry - sector C according to NKD 2007 (National Classification of Activities). Research is conducted through a survey in 30 small enterprises in Republic of Croatia. The paper presents the impact of human resources (number of employees and their income) on financial indicators of enterprises in 2015. The aim is to make recommendations and suggestions how to improve the strategy of human resources in enterprise in order to achieve better financial results.