Published August 2026, Pg. 70-77

Section: Economy, management and law

UOT: 622.276.53

DOI: 10.37474/0365-8554/2026-08-70-77

Assessment of the efficiency of human capital utilization in the oil and gas sector: based on the example of SOCAR

L.G. Isgandarova - Azerbaijan State University of Economics

Over the past decade, state-owned oil and gas companies around the world have made human capital management a strategic priority. However, despite the large investments made by oil companies in personnel development, they do not have comprehensive systems for assessing the effectiveness of human capital use. This article proposes a new approach to human capital assessment adapted to the unique conditions of SOCAR (SOCAR), the energy company of the Republic of Azerbaijan. Based on the company’s annual financial statements and sustainable development reports for 2009–2023, the study calculates quantitative indicators such as the human capital profitability ratio, human capital investment profitability, human capital added value, and labor productivity dynamics. 
The analysis shows that there is a strong positive correlation between increasing labor costs and increasing company revenues: the human capital profitability coefficient peaks in 2018 and 2022, which corresponds to high oil prices, and decreases in 2020 due to the COVID-19 pandemic and in 2023 against the background of price normalization. The number of employees is systematically decreasing – from more than 75.000 employees in 2010 to 48.320 in 2023, while the costs per employee (salary, training, etc.) have increased by more than 6.9 times. The results of the study show that the development of human capital at SOCAR continues in accordance with the company’s sustainable development plan, but a significant drawback is the lack of a formal integrated human capital monitoring subsystem in management reporting. As a result of the study, a model is presented that provides for measuring the efficiency of human capital use for an oil company.

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