Human Capital Retention - Are you throwing out baby?

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Reductions in head-count are sometimes unavoidable as changes to the business environment place demands for changes to organizational designs. When leaders consider how best to right-size their Human Capital to bring it in-tune with their adapted business needs they need to know which talent is contributing most to the enterprise – and what the consequential loss of head-count may be… When the time comes will you be ‘throwing out the baby with the bath water?’

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Human Capital Retention - Are you throwing out baby?

  1. 1. Human Capital Value and Retention Are You Throwing Out Baby? How to judge which talent really matters Ian Tomlin
  2. 2. Reductions in head-count are sometimes unavoidable as changes to the business environment place demands for changes to organizational designs. When leaders consider how best to right-size their Human Capital to bring it in-tune with their adapted business needs they need to know which talent is contributing most to the enterprise – and what the consequential loss of head-count may be… When the time comes will you be ‘throwing out the baby with the bath water?’
  3. 3. Re-Shaping the Foot-Print Why Organizations Right-Size Their Human Capital Profile 1. Shifts in enterprise strategy 2. Policy adaptation due to changes in compliance/risk profile 3. Improvements in technology/process innovation 4. Cost reduction programs 5. Globalization factors When change occurs organizational leaders must decide which talent is the most valuable and therefore should be retained Picture by Damian Gadal
  4. 4. How are decisions on head-count reduction made today? Not well. Studies suggest that few organizations have any effective way of measuring Human Capital Value. The most prevalent methods are based on understanding business unit contributions and personal 360 degree appraisals.
  5. 5. Taking action to judge the value of worker contributions needs to happen well before the time to review arrives… A failure to plan ahead and install measurement systems means that managers have the unenviable task of basing head-count reductions on the opinions of others – backed up by little or no basis of evidence
  6. 6. Retention Planning Organizations that seek to retain their most valued people… That are essential to sustain the enterprise That deliver the greatest results the enterprise cares about That adapt norms of behavior our stakeholders care about …require a Retention Policy that sets out how the contributions made by human capital assets are valued by the enterprise
  7. 7. Human Capital Value Management Macro (Ecosystem) How the enterprise creates an environment where the product of the individual worker is optimized Micro (The Individual) How the individual worker optimizes their contribution to the outcomes of the enterprise Human Capital Value Management establishes a reporting and governance ecosystem that places its focus on managing the value of human capital, rather than the assets themselves. It places a higher currency on bottom-line outcomes – essential when adapting or reducing head-count in a thoughtful way.
  8. 8. When It Comes To The Decision… Will You Be Ready?
  9. 9. Thank You. Ian Tomlin is a management consultant and author. He's written several books and hundreds of white papers and articles on the subject of customer science, organizational growth, technology and the evolution of the workplace. Article Sponsors: Workforce and Talent www.workspend.com IT and Technology www.ustechsolutions.com Books by Ian Tomlin: Agilization – The regeneration of competitiveness Cloud Coffee House – The birth of cloud social networking and death of the old world corporation SOS - Social Operation Systems

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