1. Investing in the Human Capital
The Rhetoric, the Reality and the Solutions
2. 1-Human Capital- The Rhetoric
• Human Capital is the greatest
asset
• “The Real wealth of Nations” UN
Report.
• The need to focus the Human
Capital and business case for
investing in HC.
3. 2-Human Capital- The Reality
• Human Capital is absent in the
balance sheet (Intangibility)
• The financial impact of the HR
strategy is often not measured
• The ROI in HC needs to be
established
4. 2- Valuing HC as an asset in Balance Sheet
• Are people an asset or a liability?
• Measuring People’s value through the
total employment costs.
• Focusing on the earnings
• Human capital investment realization
(objectives and growth).
5. 3- Infosys HC valuation
• Infosys Human Capital Valuation
• Levi-Schwartz Human Resources Accounting
Model.
• EV based on present value of the future
earnings
• Investment in the L & D
6. 4-Investing the HC and HR Strategy
Pay
• Base Pay
• Sales Incentives
• Collection Incentives
• Star Performers Awards
• Award for Long Service
and Persistent
Performance
• Award for Exceptional
Performance in Project
Management
• Award for Extraordinary
Achievements and
Innovation
• Sincere Cooperation,
Devotion and Dedication
Award
• Attendance Incentives
Benefits
•Medical Insurance
•Paid time off
•Corporate Wellness
Programmes
•social gatherings and
celebrations
Work Environment
•Flexible Hour
arrangement
•Tools and recourses:
•HRIS
•Training Management
System
•Physical Environment
•Employee engagement
strategies
Learning &
Development
•Training Courses and
seminars
•Performance
Management
•Career progression
•Transfers
•Coaching
• Investing in our employees is beyond investing L& D
• Investing in the HC should be a part of total reward system managed through HR policy
7. • How to measure the return of investment in HR
strategy?
• Research from the CRF institute in the HR
management of 500 companies shows that HR
policy has profound impact on the absenteeism
rate.
• Absenteeism cost and impact
• Absenteeism rate is a strong indicator of the
physical and mental well being of employees.
4-Investing the HC and HR Strategy (Cont)
8. 4- Investing the HC and HR Strategy (Cont)
• Development of the staff
• Flexible Working
• Employee counseling on
work-life Balance
9. • Company Name: Sixpence Consulting S.P.C.
• Established: Established in the Kingdom of Bahrain in
2005.
• Locations: Operating in the GCC with offices in Bahrain,
UAE & Oman.
• Total headcount: Around 600 across the GCC.
Case study : Investing in HC through L & D
12. Case study : Investing in the HC through L & D
Main deliverables:
1. Achieving the Sales targets.
2. Work with clients to make sure the
Sales team are delivering the
results. Intervene when necessary.
3. Managing the HR related activities
13. Case study : Investing in the HC through L & D
Sales management projects realities:
• Sales positions
• Demanding and competitive
• Positions that attract young
candidates.
• Do possess the employability skills
however they are often not
experienced.
14. Case study : Investing in the HC through L & D
198
318
103
39
11 18 6 6
0
50
100
150
200
250
300
350
Year 2012 Year 2013 Year 2014 Year 2015
Total No. of Bahrainis
Employed
Total No. of Bahrainis
Employed through GEP
• In the years between 2012-2015. We employed
658 Bahrainis
• 62 Through the GEP
15. Case study : Investing in the HC through L & D
1%
52%
41%
6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Under 20
Years
20 - 30 Years 30 -40 Years 40 -50 Years
Employee Age distribution
Under 20 Years
20 - 30 Years
30 -40 Years
40 -50 Years
16. Year 2013
•Investment in Facilities
•Selections from
Projects/Departments
based on nominations
•Soft Skills Courses
Year 2014
•Investment in Facilities
•TNA
• Yearly detailed Training
Plan
•+ Customized training
courses
•+ Budget Distribution and
Proper Allocation of the
Cost Drive ( No. of
Employees Per
Project/Department )
•+ Development of training
system 6T
Year 2015
•Investment in Facilities
•TNA
•Yearly Training Plan
•Customized training Courses
•Budget Distribution and
Proper Allocation of the
Cost Drive ( No. of
Employees Per
Project/Department )
•+Implementation of Training
System “6T”
•+Focus on technical training
and in line with NVQ
•+ Active monitoring of the
training delivery activities.
•Reporting training outcomes
Case study : Investing in the HC through L & D
18. Case study : Realizing the ROI in L & D
Results:
• Demonstrated track in achieving the deliverables of
the Sales Management projects.
• Maximized growth through the investment in L & D
• Competent staff who posses effective skills to
achieve the business objectives
• The ongoing training programmes ensured that there
is a pool of reserved talent who are ready to move to
the next level.
19. Case study : Realizing the ROI in L & D- cont
• Exceeding expectations: No1 sales team in
the EMEA region in Q1 2015
20. Case study : Realizing the ROI in L & D- Cont
Emergent results
• The Direct Employment of 177 young Bahraini
staff in Batelco.
• The Direct Employment of 42 staff in Standard
Chartered Bank.
• Direct Employment of 17 staff in Tamkeen.
21. What is next?
• HRA: Adopting joint Human Resources and
Accounting mechanisms to maximize the real
Human Capital value
• COPs: Exchange the practices on investing HC and
the ROI in Human capital
• The Extra Mile: finance and financial
consequences and to work with finance teams to
recognize the cost and the value of investing in
the Human Capital.
• National Framework for Human Capital Valuation
