Human_Capital_Measuring&reporting pres050707NJHVaLUENTiS

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Presentation given in 2007 on Human Capital Measurement and Reporting

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Human_Capital_Measuring&reporting pres050707NJHVaLUENTiS

  1. 1. HUMAN CAPITAL MEASUREMENT People Science GHCRS2006 ®Nicholas J HigginsDrHCMI MSc Fin (LBS) MBA (OBS) MCMI DipManDean, International School of Human Capital Management & CBI Conference CentreCEO, VaLUENTiS1 5th July 2007
  2. 2. Subtitled: ‘How I stopped worrying and learned to love GHCRS2006 Human Capital Reporting’2
  3. 3. Consider this..... “People as we know, for many organisations are a prime operating cost/investment and thus contribution to organisation performance. GHCRS2006 Organisations spend considerable sums each year carrying out financial audits; but spend very, very little on people management effectiveness HC/HCM audits/ reviews............ Why?”3
  4. 4. HIGH Organisation understanding and application Sub-optimal People as of performance analytics (evaluation) organisation Human Capital performance (High performance work organisations) HR as HR as proactive ‘Mr/Ms Fix-it’ driver GHCRS2006 People as Sub-optimal Human Resource organisation performance HR as HR as compliance relational only glue LOW HIGH Organisation (engagement) focus on people4
  5. 5. HCM Expanded Definition • HCM is about the management of human capital • It’s philosophy is that people are central to organisational performance • It is a more technical and proactive approach than GHCRS2006 ‘traditional HR’ that derives from the organisation performance perspective. • It marries traditional HR disciplines with measurement, performance, financial, economic and risk disciplines amongst others.5
  6. 6. So if that’s HCM, what’s HCMe? • Human Capital Measurement (HCMe) is to do with all things measurement related to people, teams, organisations etc. • It is a discipline in itself that involves analytical and statistical methodologies with metrics GHCRS2006 frameworks being but one output. • A number in HR are already familiar with certain aspects, i.e. psychologists/employee researchers • However HCMe also brings in the organisation performance measurement dimension completing6 the whole.
  7. 7. So why now? HR lexicon – new common terms • 1997 • 2007 • Employee champion • Employee engagement • HR shared services • Talent management • Competencies • Employer brand • Business partner • Human capital GHCRS2006 • Benchmarking • Human capital • Diversity reporting • Knowledge • Reward strategy management • Workforce intelligence ...The difference is CEOs/CFOs are taking far more interest in the terms on the right!7
  8. 8. Core to organisation performanceStrategicHCM Organisational engagement GHCRS2006 Employee engagement Management engagement8
  9. 9. 1. Measurement is as Measurement does GHCRS20069
  10. 10. Everyday examples of measurement • Psychometrics • Competency assessment • Survey response design (e.g. Likert) • Recruitment interviewing GHCRS2006 • Learning/coaching evaluation • Modelling analytics/analyses • Benchmarking • More sophisticated things like employee engagement, organisation engagement, VB-HR™10 Rating etc
  11. 11. “…Human capital measurement is a very misunderstood subject...(it) is really about the soul of HR professionals and their functions. Why? Because it is so much more than just metrics. It is about technical people management understanding; definition, learning, debate, clarity, performance, expertise and ultimately value contribution. GHCRS2006 For example, it is impossible to define concepts such as employee engagement, talent management, workforce intelligence, training impact or indeed the contribution of human capital management without measurement...” HR Profession: To Be or not to Be?11 Personnel Today June 2007
  12. 12. Let’s take an example....... When is an employee survey not an employee survey? GHCRS2006 When it is a workforce intelligence instrument.12
  13. 13. And the difference is......... • Employee survey • Workforce intelligence (instrument) instrument • Organisations do it on an ad hoc basis or • Done on annual basis (with interim as ‘one-off’ intervention they can tick the pulse surveys) box with • Seen as core to management of people   • Not treated as a core part of people on ongoing basis GHCRS2006 performance, • Uses robust construct such as • No underlying model – essentially random employee engagement (defined) selection of pick’n’mix questions • Use complimentary organisation • Measure ‘satisfaction’ or similar, rather than engagement and other forms of HC engagement (no definition) intelligence • No real discerning choice of HCM • Has link to measurable HR strategy specialists (as no value seen) targets/execution • Seen as peripheral to operations • Viewed as core input to the various • Organisation unaware of opportunities to contributing forms of organisation integrate performance • HR not seen as technically skilled • HR seen as technically skilled13
  14. 14. 2. Measurement methods and outputs GHCRS2006 Client examples14
  15. 15. Measuring people related stuff.....going on a journey...... Human Capital Or Measurement even... And what if I had A scorecard... with What if I could a template so I Some differing layers benchmark the could report them baseline depending on organisation in a in a standardised metrics importance and/or way for audience more meaningful way Yeh ok or rather than just one- communicating perhaps.... dimensional metrics? and learning? GHCRS2006 Employee And what if I could engagement.... Plus.... get an in-depth routemap using all of related to these to provide improvement? Which I organisationalThe HR function’s ......Sure could repeat over time? performanceperformance in And what about... YES PLEASE! Wouldn’t itterms of delivery, be bettercapability, value Or maybe...... if.....and risk I could get a fix on stuff like talent I could do some detailed management, resourcing, diversity, ‘modelling’ tying things like engagement to leadership, org comms etc so I could report turnover, or performance issues, competence on them and I could relate our HR strategy etc to it15

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