Human resource management has become crucial for designing new solutions that meet all the requirements set up in the market. In today's uncertain times people and their professional development, as well as the usage of resources available to organizations, are the key to the economy development. Organizations, which are wishing to survive on the market, are forced to develop a quality human resource development strategy. Human Resources Development Strategy places people and their professional development in the forefront. In ideal circumstances, the development strategy is made by the employees and their superiors in order to make the whole. Economics is increasingly dealing with the intangible resource in which people, their knowledge and intellectual potential play a key role. Motivation, education and teamwork are the main features in the development of human capital and the achievement of business and development goals. When we talk about motivating people, it means to manage them in the right direction. Organization itself by its rewarding system, creating opportunities for learning and development can provide a framework that achieves a high level of work motivation. Material and financial compensation consists of various forms of motivation aimed at ensuring and improving the material position of employees and financial compensation for work. This doctoral dissertation aims to present the current situation of the companies in Slavonia and Baranya and the impact of material compensations on their business. Furthermore, it presents an overview of the economic indicators, changes and events that have influenced the business of an enterprise that are presented with the aim of showing the importance of human resources in their business. The survey sample involved 3914 companies, out of which 3742 small, 133 medium and 38 large business entities from the area of Eastern Croatia, from the Brod-Posavina, Osijek-Baranja, Pozega-Slavonia, Virovitica-Podravina and Vukovar-Srijem counties. The basic purpose of this paper is to study and systematically elaborate the basic theoretical assumptions of the impact of material compensations on the operations of small, medium and large enterprises of Eastern Croatia in the conditions of the economic crisis. Also, the aim is to point to the impact of enterprise size on the level of material compensation in the company and to investigate the impact of material compensations on the company's liquidity, and to investigate whether the level of material compensation is growing with the growth of total corporate income. In the doctoral dissertation, for the purpose of scientific research, the scientific-research method is used to the extent necessary to ensure a more reliable, credible and concrete presentation of the knowledge, and to make conclusions about the proposed topic. Their application and selection depends on the set goals and hypotheses and how do they complement each other in order to achieve the set goals and confirm the set of hypothesis. The category data are represented by absolute and relative frequencies. The numerical data are described by the median and the limits of the interquartile range. The normality of the distribution of numeric variables was tested by Shapiro-Wilk's test. The differences in numeric variables between the three independent groups were tested for deviation from the normal distribution by the KruskalWallis test, and between the two independent groups by Mann Whitney U test. The correlation rating is given by Spearman's correlation coefficient (Rho). All P values are two-sided. The level of significance is set at Alpha = 0.05. The statistical analysis that is used is the statistical program MedCalc (version 16.2.0, MedCalc Software bvba, Ostend, Belgium).