Online Privacy Statement This Statement is Effective as of December 2018 Your privacy is important to Human Capital Management Institute (HCMI); maintaining your trust is paramount to us. This Statement discloses the information practices for HCMI's and our subsidiaries' websites, what type of information about our websites' users is gathered and tracked, and how the information is used, shared or otherwise processed offline. It also describes how cookies, web beacons and other technologies may be used in our HCMI Cloud services and software products. References to HCMI websites, products and services in this Privacy Statement include apps, programs, and devices. This HCMI Online Privacy Statement supplements the HCMI Privacy Statement. This Statement applies to HCMI websites that link to this Statement but does not apply to those HCMI websites that have their own Privacy Statement. 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To help us do this, we may share information with others, for instance, HCMI's business partners, financial institutions, shipping companies, postal or government authorities, such as customs authorities, involved in fulfillment. We may also contact you as part of our customer satisfaction surveys or for market research purposes. Personalizing your Experience on our Websites We may use the personal information we collect about you to provide you with a personalized experience on our websites and of our services, such as providing you with content you may be interested in and making navigation on our sites easier. We also may use this information to improve our websites. Providing Support We may use your personal information to support products or services you have obtained from us, such as notifying you of a product update or fix. We may combine your information with information from other interactions with you to provide you with more valuable suggestions in relation to product support. We also might provide "Live Chat" sessions on our websites to assist you while you're navigating through our sites or forums where problems can be raised and solutions proposed; we will use personal information you provide in these sessions or in such forums in accordance with this Privacy Statement. In the course of providing technical support to you, we may sometimes have incidental access to data that you have provided to us or data that is located on your system. This data may contain information about you, your organization's employees, customers, partners, or suppliers. This Privacy Statement does not apply to our access to or handling of this personal information; the conditions regarding the handling and processing of this data is covered by the applicable Terms of Use or other agreements between you and HCMI. HCMI Cloud services We may use information collected on your use of the HCMI Cloud services to allow us to: establish statistics about the usage and effectiveness of our software products and our HCMI Cloud services; improve and personalize your use and experience of our products and services; tailor our interactions with you; inform our clients on overall use of their products and services, and improve and develop our products and services. Marketing The personal information you provide to HCMI, as well as the personal information we have collected about you indirectly, may be used by HCMI for marketing purposes, i.e, to keep you informed about events, products, services and solutions that HCMI sells and which may complement an existing product portfolio. 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In relation to HCMI Cloud services which you are authorized to use by the HCMI client contracting for that service with HCMI, your registration information may be retained to fulfill certain requirements of that HCMI client. Cookies, Web Beacon and Other Technologies As mentioned above, we collect information from your visits to our websites and your use of our HCMI Cloud services and our software products to help us gather statistics about usage and effectiveness, personalize your experience, tailor our interactions with you, and improve our products and services. We do so through the use of various technologies, including scripts, tags, Local Shared Objects, Local Storage (HTML5) beacons, and "cookies". What are cookies and why are cookies used A cookie is a piece of data that a website can send to your browser, which may then be stored on your computer as a tag that identifies your computer. While cookies are often only used to measure website usage (such as number of visitors and duration of visit) and effectiveness (such as topics visitors are most interested in) and to allow for ease of navigation or use and, as such, are not associated with any personal information, they are also used at times to personalize a known visitor's experience of a website by being associated with profile information or user preferences. Over time this information provides valuable insight to help improve the user experience. Cookies are typically categorized as "session" cookies or "persistent" cookies. Session cookies help you navigate through the website efficiently, keeping track of your progression from page to page so that you are not asked for information you have already provided during the current visit, or information needed to be able to complete a transaction. Session cookies are stored in temporary memory and erased when the web browser is closed. 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We use Local Shared Objects, such as Flash cookies, and Local Storage, such as HTML5, to store content information and preferences. Third parties with whom we partner to provide certain features on our website or to display HCMI advertising on others' websites based upon your web browsing activity also use Flash cookies or HTML5 to collect and store information. Various browsers may offer their own management tools for removing HTML5. We may also include web beacons in marketing e-mail messages or our newsletters in order to determine whether messages have been opened and links contained within clicked on. Some of our business partners set web beacons and cookies on our site. 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Individuals may opt-out of targeted advertising delivered by NAI or EDAA member ad networks by using tools provided visiting the following sites: ​ Digital Advertising Alliance (DAA) Network Advertising Initiative (NAI) European Interactive Digital Advertising Alliance (EDAA) ​ We have also engaged with certain third parties to manage some of our advertising on other sites. These third parties may use cookies and web beacons to collect information (such as your IP address) about your activities on HCMI's and others' websites to provide you targeted HCMI advertisements based upon your interests: Links to Non-HCMI Websites and Third-Party Applications To allow you to interact with other websites on which you may have accounts (such as Facebook and other social media sites) or join communities on such sites, we may provide links or embed third-party applications that allow you to login, post content or join communities from our websites. We may also provide you with general links to non-HCMI websites. Your use of these links and applications is subject to the third parties' privacy policies, and you should become familiar with the third-party sites' privacy policies before using the links or applications. HCMI is not responsible for the privacy practices or the content of those other websites. Notification of Changes If we make any material changes to this Privacy Statement, we will notify you as required by applicable law. Privacy Questions and Access If you have a question about this Privacy Statement or HCMI's handling of your information, you can send an email to it@hcminst.com . You can also contact us at: Human Capital Management Institute 18319 Grevillea Ave Redondo Beach, CA 90278 U.S.A. In certain cases, you may have the ability to view or edit your personal information online. 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Solutions Overview Published Articles Use business analytics for human resources to drive smarter workforce spending and better talent management. Time to Fill: What It Is, Why Use It and How to Calculate It 17,343 Use Workforce Productivity to Drive Growth 60 Human Capital Financial Statements: The Missing Link between Human Capital and Financial Results 123 7 Recruiting Mistakes Companies Make and How to Get Them Right 48 RedThread Highlights SOLVE™ Strengths and Differentiators in New People Analytics Market Study 235 Employee Engagement Analytics: How to Engage and Retain Talent 3,232 Recruiting Analytics: Top 5 Talent Market Intelligence Use Cases 1,672 Appreciating Assets: Proving Workforce Value in Your Company 259 8 Steps to Workforce Planning Success: Comprehensive, Strategic Approach Leads to Positive Results 1,705 Top 6 Employee Engagement Metrics every HR Team Should Track 1,404 Using Analytics to Solve the DEI Challenge 8,009 Workforce Planning: A Quick Guide for HR Pros 2,249 Recruitment Analytics: How to Use Data to Improve Your Talent Pipeline 3,264 Top 6 Recruiting Metrics to Improve Your Recruitment Strategies 684 52 Labor Cost and Performance Benchmarks Every HR Professional Should Know 3,606 60 Recruitment Benchmarks Every HR Professional Needs to Know 12,093 Time to Start: What It Is, Why Use It, and How to Calculate It 1,004 Net Hire Ratio: What It Is, Why Use It and How to Calculate It 6,394 Internal Hire Rate: What It Is, Why Use It, and How to Calculate It 6,149 Cost per Hire: What It Is, Why Use It, and How to Calculate It 2,528 5 Reasons to Act Now on New SEC Human Capital Disclosure Rules 337 SEC's New Human Capital Disclosure Requirements: What You Need to Know and Do Now 1,502 [Summary] 2020 Workforce Productivity in the North America Banking Sector 188 Podcast: ISO's Human Capital Reporting Standard with Jeff Higgins 85 A New Era for HR, A New Human Capital Reporting Standard 2,024 To Find ROI with HR Analytics, Integrate HR and Other Data Sources 1,125 HCMI Launches Global Human Capital Value and Reporting Community 265 Human Capital Reporting Standards Finally Arrive 636 Why Valuing and Reporting Human Capital Investment Performance Matters 191 HCMI Adds Artificial Intelligence to Super-Charge SOLVE™ Workforce Analytics and Planning Software 204 How To Fix The Biggest Lie In Corporate America 287 3 Topics Every Talent Management Practitioner Should Know 232 HR Metrics: Unveiling the HR Financial Statements 469 Building a Business Case: A How-To Guide 2,522 Big Leap Forward for Human Capital Disclosure 229 Human Capital: Leveraging Your Company’s Greatest Asset 500 A Powerful Stock-Price Predictor 394 Getting to “Yes:” Building a Winning Business Case 605 Workforce Planning – A local Government Story 226 ROI of Leadership Training at National Cancer Institute 276 Finance and HR Connecting the Dots for Workforce Optimization 172 Employees are Like Peanut Butter and Napkins 309 Bringing HR and Finance Together with Analytics 631 Should Companies Expand Their Disclosure on Human Capital? 107 Putting a Dollar Value on Talent 184 The $1 Million Analytics ROI Challenge 59

White Papers The Top 25 Questions to Boost Your Workforce Analytics We all recognize how critical human capital is to the growth and success of any business, but many struggle to discern the key workforce metrics required to gain the insights necessary to make strategic decisions. To help companies make sense of all the available data, HCMI has put together a list of the top 25 most important human capital questions that all HR leaders should be asking. Download Please create an account to view downloads: Sign Up If you already have an account, please log in: Sign In

Acerca de Execute DEI Initiatives Build a more diverse workforce. Let HCMI help you unlock the power of data and insights to fulfill your DEI commitments with ease. Harness our specialized tools to set, track, and reach your diversity and inclusion goals. Take a tour Align your people to drive necessary change ​ Establish a clear and inclusive path for diversity within your organization, providing a direction that everyone can rally behind. Implement focused strategies where they are most impactful to achieve attainable diversity objectives. Gain clarity on what needs to be done Benefit from expert guidance tailored to your current situation, guiding your team toward achieving impactful results. Our top-notch analytics services will help ensure that your diversity goals are met with effective action plans. White Papers Get the book Get the book Our Clients

Case Studies ROI of Internal Hires Cadence Health sought to better understand drivers of turnover and how best to source and allocate its talent to optimize capacity, profit, and productivity. Working with multiple, disparate HR systems, HCMI’s Analytics experts identified key trends, predictive drivers, key metrics, and quantified financial impact linked to business outcomes. Read about the answers to questions like: Can we model our workforce to optimize cost, profit and productivity? Is it better to build, buy or rent talent? Is internal mobility a source of value or turnover and cost? Do we know the leading drivers of employee turnover? Do we know the leading drivers of retention? Download Please create an account to view downloads: Sign Up If you already have an account, please log in: Sign In

Case Studies Optimizing Recruiting Sources Scofield Financial (pseudonym) is a mid-sized, regional financial services company whose high turnover rates were reducing much of their recruitment to replacement efforts. In partnership with HCMI, Scofield was able to identify and target the best sources of hire, and make specific recommendations and adjustments by job type. Read the answers to questions like: Which recruiting sources were Scofield’s most reliable sources of top talent? Where is Scofield getting the highest percentage of high performers? Where are they getting more bad hires and early leavers? How can current recruiting sources be improved? Download Please create an account to view downloads: Sign Up If you already have an account, please log in: Sign In

White Papers Total Cost of Workforce (TCOW) In today’s economy, organizations are focused on efficiencies and costs. Including the Fortune 500™ organizations, total human capital costs, or total cost of workforce, is nearly 70% of operating expenses. While human capital costs may vary, they remain the single biggest organizational expense. Given their fluid and rapidly changing nature, human capital costs are extremely difficult to manage and control. Even the best organizations lack the tools with which to properly manage their workforce costs. This white paper sheds light on the Total Cost of Workforce and how you can be ready to manage it. Download Please create an account to view downloads: Sign Up If you already have an account, please log in: Sign In

Workforce Analytics & Planning Training Helping analysts, HR professionals and business leaders develop their Workforce Analytics and Planning capability since 2009. Talk to Us Find out why great companies like these have chosen HCMI Workforce Analytics & Planning Training Since 2009, HCMI’s expert training has helped hundreds of organizations strengthen their in-house workforce analytics & planning capability, including many Global 2,000 companies, nonprofits, healthcare organizations, and major government entities around the world. Online Academy Talk to Us "This course is a 'must' for HR professionals. The ability to 'manage by fact' is a key competency, not only for business units, but also for HR practitioners." ~ Senior Vice President, HR at OCBC The curriculum develops the skills required to measure and analyze the workforce to drive value through better workforce decisions. Key components include critical metrics, data visualization and presentation, and advanced financial and statistical analysis. ​ HCMI differentiators: Delivered at the client site to reduce travel time and expense Customized to incorporate current client challenges 30+ real-life case studies and 10+ hands-on exercises Proven framework, key metrics, tools, and templates to make an immediate impact Conducted by a team of globally recognized workforce analytics experts Why HCMI Workforce Academy? Since 2009, HCMI Workforce Academy has helped hundreds of organizations strengthen their in-house workforce analytics and planning capability, including many Global 2,000 companies, nonprofits, healthcare organizations, and major government entities around the world. Accredited Workforce Analytics & Planning training True evidence-based talent management framework Real case study stories, examples, and ROI Walk away with metrics, tools, and templates to make an immediate impact Plenty of quizzes and hands-on exercises to help you firmly grasp analytics concepts Meet the Expert Jeff Higgins - Founder & CEO With 25 years combined workforce planning, analytics and finance experience supporting Fortune™ 500 companies, Jeff put together this training program to help organizations around the world rapidly advance their analytics and workforce planning journey. Jeff has pioneered many innovations in measurement and predictive analytics for talent, including SOLVE™ Software, Human Capital Financial Statements (HCF$™), Workforce ROI Calculator, the Workforce Image Map (WIM), Workforce Productivity, and more. Ready to Talk? Get in Touch with Us. Let's Talk

Employee Turnover Cost: What It Is, How to Calculate It and How to Use It Employee turnover is expensive. A 2017 survey by Employee Benefit News estimated that a departing employee costs the employer on average 33% of their annual salary. Most of this cost comes from the required expenses to recruit, onboard, and train a replacement. Simply put, for each departed employee with a $60,000 annual salary the employer can expect to spend $20,000 in replacement costs. And this figure doesn’t include the lost productivity on the business or the salary of the new employee which is typically at a higher pay rate. ​ To help organizations improve turnover, we put together this beginner’s guide to everything you need to know about total cost of turnover, how to calculate it, and how to use it to discover cost-saving opportunities. What is Employee Turnover Cost? Why You Need to Monitor Your Employee Turnover Cost How to Calculate Your Employee Turnover Cost Employee Turnover Cost Best Practices What You Need to Know about Employee Turnover Cost Have Questions? Talk to Us What's Employee Turnover Cost? What is Employee Turnover Cost? A large portion of employee turnover costs are incurred to hire a replacement employee and train that replacement. Cost of turnover generally has some directly measurable or "hard" costs that negatively impact the organization but many costs or impacts typically associated with turnover are difficult to quantify for most organizations. ​ Examples of costs of turnover include but are not limited to absence and leave costs, recruiting costs for replacement hires, new hire orientation costs, initial new hire training costs, and internal vs. external hire compensation differential. ​ The cost of turnover can be broken into the following major categories: Pre-departure costs Departure and open position costs Replacement costs Offset costs Why You Need to Monitor Your Employee Turnover Cost Why You Need to Monitor Your Employee Turnover Cost Keeping business expenses under control is usually the go-to-answer for this question. The higher the employee turnover rate the higher the cost will grow. ​ Below are some of the top turnover questions companies are asking. You can find our completed list of the top 25 key human capital questions here . Are we losing the right people (low performers) or the wrong people (high performers or critical roles/skills)? What if the departed employee is a high performer? What if he or she is working in a critical and core position? ​ Smart companies aim to maintain overall turnover at the manageable level while keeping turnover of high performers, core positions and critical job roles to the minimum. How to Caluclate Your Employee Turnove Cost? How to Calculate Your Employee Turnover Cost Employee Turnover Cost Best Practices Employee Turnover Cost Best Practices Now that we have covered Employee Turnover Cost and how to measure it, the next step is to figure out how to use this metric to improve your workforce decisions and intervention plans. Below are two use cases of this metric: ​ Example 1: Integrate talent market data to show the cost savings from retaining talent Bringing your internal turnover and compensation costs together with external market data can help you understand your workforce like never before. ​ By comparing current average compensation with the market rate, users can measure, track, and correlate compensation gaps with turnover trends. With salary often cited as the #1 reason for leaving, this should be the first area HR needs to examine for possible drivers for turnover and retention. ​ Software like SOLVE™️ makes it easy for users to compare the compensation of departed employees with the average market rate and what it would cost to replace with a new hire. ​ As shown in figure 1, the average compensation of a departed sales staff is around $66,000 but it costs this company well over $87,000 to replace with a new hire. In other words, it costs them $21,000 MORE than what they are currently paying to replenish each departing salesperson. Figure 1: Comparing avg new hire compensation with avg compensation of departed employees These numbers can add up quickly since Sales is traditionally a role with a high turnover rate. With over 500 terminations last year, they can expect to spend $10 million more each year on replenishing departing sales staff. ​ While further investigation is required to pinpoint drivers of turnover, one of the first areas to investigate is the gap between current compensation and the average market rate. According to figure 2, there is a $12,000 or 18% gap in average compensation for those who departed. Figure 2: Comparing avg compensation of departed employees with avg market compensation Case Study Download Now Attrition Study at Public Storage Example 2: Use scenario modeling to find the best turnover intervention for your company Picking up where we left off in example 1, now that you know that there is a large compensation gap, the next step is to figure out what kind of increase in salary or improvement in other areas could reduce turnover rate and cost. One effective way you can do this is through scenario modeling. ​ As seen in figure 3, you should use an analytics model that can project your Total Cost of Turnover and Turnover Rate and compare to your goals based on changes to a series of input variables. Input variables can include current salary vs. market rate gaps, current benefit vs. market rate gaps as well as engagement, promotion, and much more. Using this modeling technique, you can find a set of interventions that are both cost-efficient and achievable. Figure 3: Forecasting turnover rate and total cost of turnover Want to See How Your Organization Can Benefit from Employee Turnover Cost? Let's Talk

Research Articles FORUM BLOG News Events Log in Welcome to the Human Capital Value & Reporting Community! Welcome ​ The Human Capital Value & Reporting Community was established to support management teams, boards and investors who increasingly see the critical importance of quantifying the value and potential risks of a firm’s workforce - frequently viewed as the most valuable asset and the driver of competitive advantage. The upcoming release of ISO 30414 guidelines for human capital reporting accelerates the internal and external demand for human capital performance metrics as companies evaluate how best to measure and share information about the impact of the workforce on business results. ​ ​ ​ Mission ​ The mission of the Human Capital Value & Reporting Community is to be the “go to” source for HR and business leaders, boards and investors to seek and share insights on how best to measure, quantify, evaluate and report the business impact of an organization’s human capital investments. We do this by providing original and curated expert content, sharing answers to need-to-know questions through our community forum, and bringing the community together through virtual and in person events. ​ ​ ​ Membership ​ There is no fee to join the Human Capital Value & Reporting Community, however to ensure a rich and open dialogue membership is reserved for HR and business executives, board members and investment professionals. We invite you to join us. Join the Community

Case Studies Bio-Tech Productivity Bio-Tech’s HR needed a firm understanding of its workforce impact on business results and ways to support new, rigorous organizational design activities, with a focus on increasing workforce productivity and controlling contingent costs. Bio-Tech engaged HCMI for a high level productivity analysis using advanced workforce productivity metrics from HCMI’s Human Capital Financial Statements (HCFS) as well as headcount, high level talent, and workforce cost data. Bio-Tech has 16,500 employees and 16,000 contingent workers: How is Bio-Tech’s productivity relative to competitors? Where are opportunities to optimize Bio-Tech’s workforce investment? Is Bio-Tech effectively managing and controlling human capital costs? Are there talent risks that could impact Bio-Tech’s business goals in the coming years? Download Please create an account to view downloads: Sign Up If you already have an account, please log in: Sign In

Job Classification Framework A Job Classification Framework or Job Architecture or Job Matching Framework is a series of progressively higher related jobs distinguished by levels of knowledge, skills, abilities (competencies) and other factors. Using a job classification framework makes it possible to identify critical roles, skills and promotional opportunities quickly and easily. It also supports deep job analysis for insights across the organization. A job classification framework is critical in building the foundation for workforce analytics and planning as it enables advanced segmentation and identification of trends and opportunities for particular workforce groups and isolation of cohorts for detailed analysis. While the value increases exponentially as organizations progress to more advanced analytics and planning, the immediate value is in the ability to slice across business units or divisions and identify all employees in a particular job role or function. FIND OUT WHY GREAT COMPANIES LIKE THESE HAVE CHOSEN US Have Questions? Talk to Us Benefits of Job Classification Framework Giving management the ability to measure and manage jobs, skills, experience Improving recruiting through better matching of competencies and skills Enabling more targeted interventions on training, career development and internal mobility Delivering critical role job classification analysis and management Setting standards while keeping flexibility in staffing and assigning job duties Creating reports and segmentation drill down into job category, job family, job role Quickly and easily grouping jobs for reporting, trending, and in-depth analysis Example Application of Job Classification Framework In the example below, the job classification framework makes it easy to identify the total HR population and how many analysts exist across all business units of the organization. With this information you can answer questions like “how many analysts do we have across the organization?” or “how many HR people do we have in the company?”. See below: HCMI Job Classification Framework HCMI Job Classification Framework includes over 86,000 unique job titles and built-in identification and matching capabilities. This allows for rapid job selection and matching by decision level and primary job function and provides quick access to critical roles for organization-wide job mapping. Contact Us Want to know more about our Job Classification Framework? Click on the button below to submit a contact form and we will get back to you shortly. Talk to Us Don't forget to share this post!