Requirements and Challenges of Implementing Human Resource Accounting System in the Libyan Insurance Sector: A Field Study on Libya Insurance Company

Abstract

This study aims to investigate the requirements necessary for implementing a human resource accounting system at Libya Insurance Company and to diagnose the challenges across various dimensions: organizational, professional, technical, human, financial, and legal, which hinder the implementation of this system within the company. To achieve the research objectives, the study adopted a descriptive-analytical approach as its general framework. Regarding data collection, a well-structured questionnaire was developed and distributed to the target sample. Out of a total of (35) distributed questionnaires, (32) completed and valid forms were recovered for processing, reflecting a high response rate that supports inferential reliability.For the purpose of hypothesis testing, the primary data underwent a series of advanced statistical tests and methods, enabling an accurate and objective analysis of variables. Based on these tests, the following results were reached: The results showed acceptance of the first main hypothesis with a very high degree of agreement, indicating the existence of requirements for implementing a human resource accounting system at Libya Insurance Company. The results also showed acceptance of the second main hypothesis with a very high degree of agreement, indicating the existence of organizational, professional, technical, human, financial, and legal challenges that impede the implementation of this system. Based on the practical findings, several core recommendations were formulated, the most important being: the necessity for the general management of Libya Insurance Company to move towards the actual implementation of human resource accounting, due to the accurate information flow this system provides in monitoring the value of human capital. This ensures the provision of an integrated database that works to enhance the quality of financial reports and support the efficiency of administrative and financial decisions within the company. Furthermore, the general management of Libya Insurance Company should adopt flexible policies aimed at overcoming traditional organizational structures, recognizing human resources as strategic investment assets, and overcoming administrative and professional obstacles that prevent accurate accounting measurement of human competencies.