View definitions, formulas, best usage advice and everything that an analytics team needs.
01/19 - 01/23
Organizations publicly extol their people as their most valuable asset. However, measuring the precise financial return of human capital investments on the bottom line has proved to be an elusive goal.
The Human Capital Management Institute (HCMI) outlines the research linking companies who invest in Virgin Pulse wellbeing programs to significant financial returns in the form of workforce productivity gains, lower attrition rates, and fewer days lost to illness.
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 alleviate some of the pain and to make sense of all the available data that you could potentially be analyzing, Human Capital Management Institute (HCMI) has put together a list of the top 25 most important human capital questions that all HR leaders should be asking.
What if human capital could be valued and its contribution quantified in the form of productivity or return? What if the return on human capital could be definitively linked to business results? In essence:
Can changes in human capital metrics explain movements (i.e., predict) in stock performance for companies? The answer is YES!
Over the past few years, organizations have done an unprecedented amount of restructuring, retrenchment, and downsizing. Much of this has been reactionary, without time to think, plan, or take into consideration the optimal size and structure of the workforce.
This white paper will help address this issue by outlining the top 5 key human capital metrics and how they can help make sense out of the challenges and confusion of economic downturns and growth cycles. The metrics covered in this white paper provide:
Visibility to understand and analyze human capital.
The ability for data driven decision making for the workforce.
Your Organization with a better level of preparedness for economic crisis.
The ability to make precise surgical cuts vs. ineffective “cut across the board” methods.
UPS, a leader in international package shipping, wanted to know whether leadership competencies have a significant effect on group and individual performance, and if so, which competencies were most important among the leaders of their core and critical parts of the business.
This case study shows how HCMI was able to help UPS:
Confirm and quantify the relationship between leadership quality and organizational performance
Understand which competencies linked to outcomes such as Quality, Operating Cost, and Customer Scores
Identify areas for improvement with an ROI opportunity of up to $1.1 Billion
Bio-Tech’s HR needed a firm understanding of its workforce impact on business results and ways to support new, rigorous organizational design activities, with a focus on increasing workforce productivity and controlling contingent costs.
Bio-Tech engaged HCMI for a high level productivity analysis using advanced workforce productivity metrics from HCMI’s Human Capital Financial Statements (HCFS) as well as headcount, high level talent, and workforce cost data.
Bio-Tech has 16,500 employees and 16,000 contingent workers:
How is Bio-Tech’s productivity relative to competitors?
Where are opportunities to optimize Bio-Tech’s workforce investment?
Is Bio-Tech effectively managing and controlling human capital costs?
Are there talent risks that could impact Bio-Tech’s business goals in the coming years?
HCMI’s Human Capital Financial Statements (HCF$) provide a standard means with which to measure, report and disclose a company’s human capital.
Learn more about how BroadTek Communications, a large publicly traded Asian Telecommunications Company using HCF$, registered significant 2 year productivity gain over peers by optimizing their Total Cost of Workforce (TCOW).
A 2018 survey found the biggest barrier to businesses adopting a paid family and medical leave policy to be the limited understanding of a company’s return on investment. Panorama stepped in to fill this information gap with its new report, The Business Impacts of Paid Leave, which shares new research on the relationship between paid leave and workforce productivity.
This report serves as one of the few sources of data on the business outcomes of paid leave, demonstrating that offering paid leave to employees can be part of a running a profitable company and potentially boost workforce productivity.
Public Storage built its first self-storage facility in 1972. Today it operates 2,700+ locations in the United States and Europe, totaling more than 142 million net rentable square feet of real estate. More than 20 factors were studied as a part of the analysis.
Those factors that were predictive of a successful hire, were used to create a “candidate profile.” After analyzing pay rates for the Metropolitan Statistical Areas throughout various regions in which Public Storage operates, a slight increase in wages for property-level managers was found to improve retention.
The findings from the analysis resulted in, decreased business HR and administrative costs, creating a costs savings of $290,000 to $455,000 within one years time.
You can’t afford to miss this one! Our broad-reaching white paper lays out detailed analysis and evidence to support the conclusion that human capital metrics can successfully predict public company stock price changes (i.e., performance).
Highlights of the white paper:
Learn the correlation between select HC metrics and stock price.
Covers 22,000 companies over 16 years and 6 HC metrics.
Breakdown of specific industries and how they’re affected.
Discover how Total Cost of Workforce(TCOW) is superior to traditional headcount metrics.
Introducing the Human Capital Disclosure Statement, a reporting framework that captures and quantifies key information about your human capital and its business impact, allowing users to make workforce management decisions that are both sustainable and optimized.
Imperial Services Corp, a global firm, had experienced a plateau in annual sales volume, and needed to better understand what correlated same-store sales and the overall top line.
Analyzing multiple factors across a half decade of workforce data, HCMI helped to determine how various factors like experience, manager quality and training influenced productivity for different stages of the sales associate career path.
In this business case, learn more about how:
Different talent and organizational factors correlated to sales production
Notions of experience driving performance and productivity were debunked
Training programs impacted individual productivity in different geographies and channels
The analysis project generated an ROI opportunity of $180 million
Scofield Financial is a mid-sized, regional financial services company whose high turnover rates were reducing much of their recruitment to replacement efforts. There was also little information on how to acquire those employees who would remain with the organization and perform at high levels.
This case study shows how HCMI help Scofield to:
Generate an annual saving of approximately $12 million
Reduce the voluntary turnover rate by 40%
Recruit top talent and reduce turnover by analyzing their key drivers of turnover and factors associated with retention
Now more than ever, an organization’s success is tightly linked to its talent. Yet, the majority of talent spending decisions are made without business and financial ROI measures.
In PWC’s 2019 Annual Global CEO Survey, CEOs affirmed that availability of key talent is among the top three business threats that affect their ability to innovate and lead to higher than expected workforce costs.
This eBook provides HR and business leaders with a starting point for delivering actionable business insights into the talent investment side of their organizations. Download this eBook to learn the importance of using data to improve talent spending decisions by viewing HR analytics from a financial ROI point of view.
HCMI’s Human Capital Financial Statements (HCF$) provide a standard means with which to measure, report and disclose a company’s human capital. A company’s workforce can finally be reported separately for what it is: a critical factor in the success of any organization.
First, read more about the HCF$ in the white paper. Learn how and why:
HCF$ need to be an integral part of business decision making.
HCF$ quantify HC similar to traditional financial statements.
The overall benefit of using HCF$ for your company.
Methods to utilize HCF$ to make evidence-based business decisions.
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.
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?
JetBlue, a long-time leader in customer satisfaction, sought to understand how the engagement of its employees linked to company profitability. Using advanced productivity metrics and segmentation of both workforce and customer data, this analysis project uncovered how JetBlue compared to competition in terms of efficiency and productivity, and confirmed which of three different hypotheses was true to chart a course of action for staying on top and improving in customer satisfaction.
Increases in which employee “Net Promoters” group drove increases in customer “Net Promoters”
Workforce factors and risks linked to business drivers such as employee engagement, retention, customer satisfaction, customer loyalty, revenue, and profit
Manager tenure and quality affected customer Net Promoter Scores though employee engagement
All of these factors affected revenue and profitability