I got this document hoping that it will be useful for the HR industry people as well!
The list includes absenteeism, turnover, compensation and benefits costs.
Below are some common measurements :
1. Human Resource Expenses (HR Department Costs/Budget)
As a percentage of operating costs
As a percentage of revenue
Per employee
2. Total Investment in Human Capital (Total HR Expenses Plus All Salaries and Benefits of Non-HR Staff)
As a percentage of operating costs
As a percentage of revenue
Per employee
3. HR Expenses by Function
Recruiting and selection cost as a percentage of total HR
Recruiting and selection cost per new employee hired
Training/learning/development costs as a percentage of total HR
Training/learning/development costs per employee
Training/learning/development costs as a percentage of compensation
Compensation costs as a percentage of total HR
Compensation costs as a percentage of operating expenses
Compensation costs per employee
Benefit costs as a percentage of total HR
Benefit costs as a percentage of operating expense
Benefit costs as a percentage of compensation
Benefit costs per employee
Employee relations costs as a percentage of total HR
Employee relations costs per employee
Compliance and fair employment costs as a percentage of total HR
Compliance and fair employment costs per employee
4. HR Expenses by Process/Programming
Analysis and assessment costs as a percentage of total HR
Design and development costs as a percentage of total HR
Implementation and delivery costs as a percentage of total HR
Operations and maintenance costs as a percentage of total HR
Measurement and evaluation costs as a percentage of total HR
5. Selected HR Costs
Turnover cost per employee leaving
Turnover cost as a percentage of compensation
Accident cost per incident
Safety cost per employee
Absenteeism cost per absence
Absenteeism cost as a percentage of average wage rate
Health care cost per employee
Health care cost as a percentage of total benefits
Source: Excerpted from Investing in Your Company's Human Capital, by Jack Phillips. Copyright 2005 by AMACOM Books.
From China, Guangzhou
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5The list includes absenteeism, turnover, compensation and benefits costs.
Below are some common measurements :
1. Human Resource Expenses (HR Department Costs/Budget)
As a percentage of operating costs
As a percentage of revenue
Per employee
2. Total Investment in Human Capital (Total HR Expenses Plus All Salaries and Benefits of Non-HR Staff)
As a percentage of operating costs
As a percentage of revenue
Per employee
3. HR Expenses by Function
Recruiting and selection cost as a percentage of total HR
Recruiting and selection cost per new employee hired
Training/learning/development costs as a percentage of total HR
Training/learning/development costs per employee
Training/learning/development costs as a percentage of compensation
Compensation costs as a percentage of total HR
Compensation costs as a percentage of operating expenses
Compensation costs per employee
Benefit costs as a percentage of total HR
Benefit costs as a percentage of operating expense
Benefit costs as a percentage of compensation
Benefit costs per employee
Employee relations costs as a percentage of total HR
Employee relations costs per employee
Compliance and fair employment costs as a percentage of total HR
Compliance and fair employment costs per employee
4. HR Expenses by Process/Programming
Analysis and assessment costs as a percentage of total HR
Design and development costs as a percentage of total HR
Implementation and delivery costs as a percentage of total HR
Operations and maintenance costs as a percentage of total HR
Measurement and evaluation costs as a percentage of total HR
5. Selected HR Costs
Turnover cost per employee leaving
Turnover cost as a percentage of compensation
Accident cost per incident
Safety cost per employee
Absenteeism cost per absence
Absenteeism cost as a percentage of average wage rate
Health care cost per employee
Health care cost as a percentage of total benefits
Source: Excerpted from Investing in Your Company's Human Capital, by Jack Phillips. Copyright 2005 by AMACOM Books.
From China, Guangzhou
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Hi Saba,
You have posted a very good article. This topic is very rarely discussed here. Please let me know:
1. How important is accessing Human Capital in an organization?
2. How do we make the best out of the inferences?
Regards,
Soumya Shankar
From India, Bangalore
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You have posted a very good article. This topic is very rarely discussed here. Please let me know:
1. How important is accessing Human Capital in an organization?
2. How do we make the best out of the inferences?
Regards,
Soumya Shankar
From India, Bangalore
Acknowledge(0)Amend(0)
Hi Soumya,
Sorry for replying to you late due to my busy routines in the last few days!
Well, referring to your first question, it is really important for a company to assess its human capital as it helps with:
1. Staff training costs for each department/skill set-wise talent pool.
2. Providing insight for future budgeting for employees based on their skill level (intellectual knowledge) and department.
3. Calculating and evaluating the effectiveness of the hired candidates. When hiring a candidate, efficiency is usually the focus, so it's essential to measure effectiveness as well.
4. Identifying the critical talent pools necessary for a company's success.
5. Preparing a succession plan for the crucial talent pool.
But before we move on to measuring the human capital...
From China, Guangzhou
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Sorry for replying to you late due to my busy routines in the last few days!
Well, referring to your first question, it is really important for a company to assess its human capital as it helps with:
1. Staff training costs for each department/skill set-wise talent pool.
2. Providing insight for future budgeting for employees based on their skill level (intellectual knowledge) and department.
3. Calculating and evaluating the effectiveness of the hired candidates. When hiring a candidate, efficiency is usually the focus, so it's essential to measure effectiveness as well.
4. Identifying the critical talent pools necessary for a company's success.
5. Preparing a succession plan for the crucial talent pool.
But before we move on to measuring the human capital...
From China, Guangzhou
Acknowledge(0)Amend(0)
Hi Soumya,
Sorry for replying to you late due to my busy routines in the last few days!
Well, referring to your first question, it is really important for a company to assess its human capital as it helps for:
1. Staff training costs for each department/skill set-wise talent pool.
2. Provides insight for future budgeting for the employees as per their skill set level (intellectual knowledge) and also department-wise.
3. To calculate and judge the effectiveness of the candidates hired, as while hiring a candidate, only efficiency is understood, so it is also the best way to measure effectiveness.
4. To also determine the talent pools that are critical to a company's success and also to prepare the succession plan for the crucial talent pool.
But before we go beyond to measure the human capital, we will have to:
- Forecast the supply and demands of skills (always in flux) as per clients' requirements:
a) Forecasting clients' demand to identify the skills that are commoditizing ahead of the market, i.e., what skills clients will be needing after 3-5 years.
b) To assemble workforce capabilities to meet clients' needs.
c) The categorization of skills and employees' capabilities and identification of job roles that are linked with multiple skills.
Investing in human capital and devising flexible retention plans that are more career-oriented will also help in reducing the turnover rate.
From China, Guangzhou
Acknowledge(0)Amend(0)
Sorry for replying to you late due to my busy routines in the last few days!
Well, referring to your first question, it is really important for a company to assess its human capital as it helps for:
1. Staff training costs for each department/skill set-wise talent pool.
2. Provides insight for future budgeting for the employees as per their skill set level (intellectual knowledge) and also department-wise.
3. To calculate and judge the effectiveness of the candidates hired, as while hiring a candidate, only efficiency is understood, so it is also the best way to measure effectiveness.
4. To also determine the talent pools that are critical to a company's success and also to prepare the succession plan for the crucial talent pool.
But before we go beyond to measure the human capital, we will have to:
- Forecast the supply and demands of skills (always in flux) as per clients' requirements:
a) Forecasting clients' demand to identify the skills that are commoditizing ahead of the market, i.e., what skills clients will be needing after 3-5 years.
b) To assemble workforce capabilities to meet clients' needs.
c) The categorization of skills and employees' capabilities and identification of job roles that are linked with multiple skills.
Investing in human capital and devising flexible retention plans that are more career-oriented will also help in reducing the turnover rate.
From China, Guangzhou
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