Analytics
– Everyone driving success
According to Robert J. Grossman,
lawyer and professor of management studies at Marist College in
Poughkeepsie, New York, in his contributed article to HRMagazine, January
2005: "Blind Investment – If people are a company's biggest
asset, why don't Wall Street analysts pay more attention to them?"
he says "Now HR has the tools it needs to demonstrate the
relationship between HR metrics and stock market success."
Here are the Five Human Capital
Measures
(source:
PricewaterhouseCoopers/Saratoga)
1. Human capital ROI – pre-tax
profit for each dollar invested in pay and benefits after non-human
expenses are removed.
2. Revenue per employee –
revenue each regular employee generates.
3. Profit per employee –
provides an integrated picture of productivity and expense control
efforts.
4. Labor cost as a percent of
revenue – percentage of revenue dedicated to comp and benefits.
5. Voluntary separation rate –
percent that voluntarily left the organization as an indicator of
stability, profitability, and productivity.
First drill downs, then
benchmarks, then best practices, then critical success factors, then score
cards, and now its five human capital measures.
Finally, at last, we can all breathe a sigh of relief.
And, to think it's only five easy calculations (and all based on
head counts, at that).
Is it any wonder that we find it
difficult to have an equal place at the leadership team table?
And, if you think the 'big five' are a bit ludicrous, even more
disturbing is the list of what most of us are actually measuring (see
following list).
Highest-Frequency
Measures*
Turnover
(96%)
Voluntary
Resignation (84%)
Average
Compensation (82%)
Average
Workforce Age (77%)
Diversity
(76%)
Compensation/Total
Cost (76%)
Average
Seniority (75%)
Work
Accident Frequency (74%)
Percent
with Variable Compensation (71%)
Percent
with Stock Options (71%)
*Source: Conference Board, “Value at Work”, and
John W. Boudreau (CEO and USC) and Peter M. Ramstad (PDI) "HR Measurement…A Force for Change, CEO Metrics &
Analytics", Teleconference, March 3, 2004.
Isn't it more than passing
strange that none of the lists have even the slightest mention of job fit,
behavior, role, contribution, competency, personality, or key traits,
skills, abilities and attributes?
