26 May. 2015 | Comments (2)
How Can Your Organization Begin the Human Capital Analytics Journey? Try the K.I.S.S. Principal
In an earlier blog posted on the Human Capital Exchange, I described a comprehensive approach that a company can use to organize a human capital analytics initiative. But following that template requires companies to dedicate high-level resources to effectively execute its concepts.
29 May. 2014 | Comments (0)
The Value of Lagging Indicators
Janet Yellen uses what she calls her “dashboard” of jobs data to justify the Fed’s easy monetary policies and to argue there’s still considerable slack in the labor market. CEOs have their own dashboards that measure financial, customer, internal business processes, and growth indicators.
14 Mar. 2014 | Comments (0)
Assessing Organizational Readiness for a Human Capital Analytics Initiative
Organizing and executing a cohesive, ongoing human capital analytics initiative in an organization is no easy task. If it is done effectively, HR will drive strategic and operating decisions that will continuously improve business performance.
20 Dec. 2013 | Comments (0)
Creating Order Where Chaos Reigns
In his New Your Times bestseller The Agenda, Michael Hammer observed that “a company’s measurement systems typically deliver a blizzard of nearly meaningless data that quantifies practically everything in sight, no matter how unimportant..."
06 Nov. 2013 | Comments (0)
Predictive Analytics: A Potential Fools’ Errand
It’s a struggle to swim against the current, and that’s just what one is doing when one takes on the concept of predictive analytics – a concept that is very much in vogue in the HR analytics space.
12 Sep. 2013 | Comments (2)
C-Suite Influence: HR’s Greatest Challenge…and Opportunity
Influence in the C-suite, or lack thereof, has been a long-standing challenge for HR leaders. In too many companies, Chief Human Resource Officers (CHROs) have wielded less influence in business decisions than the challenges their organizations require. That can change.
16 Aug. 2013 | Comments (0)
Per FTE Financial Measures: R.I.P.
Several prominent organizations promote the use of per full-time equivalent measures (Per FTE) to monitor how well the financial resources companies spend on human capital are performing. These financial measures include productivity and profitability.
22 Jul. 2013 | Comments (4)
Productivity: Normalizing for Different Business Models
Answer this question! Which one is the better productivity number – $2.28 or $1.79? If you answered $2.28, you’d be wrong. Surprisingly, the $1.79 productivity level generated a 31% ROI, while the $2.28 productivity level generated a 4% ROI. How could this be? Different business models.
21 Jun. 2013 | Comments (0)
Companies spend a portion of their limited financial resources on human capital to drive the revenue and profits of the business. This blog focuses on the revenue that the human capital investment generates.
30 May. 2013 | Comments (0)
It’s Human Capital ROI, Stupid
Numerous constituencies in the HR world have developed sets of HR metrics, approaches, and continuums – only adding to the chaos. Due to the level of complexity of most approaches and lack of a cohesive order, the promise of HCA has, consequently, yet to be fulfilled, or “Made to Stick.”
14 May. 2013 | Comments (0)
Human Capital ROI: Measuring Value-Added Formulas
Companies invest in human capital to drive revenue, and CEOs want to know how much of a return is generated. However, the more discerning question is whether the level of ROI of the human capital investment is adding to or destroying the value of the business enterprise.
24 Apr. 2013 | Comments (2)
Human Capital ROI – The Holy Grail
Some of the thought leaders in the human capital analytics space have referred to human capital ROI as the Holy Grail measure. I agree… here’s why.
10 Apr. 2013 | Comments (0)
Human Capital Investment: Driver of Enterprise Value
Like any investment, a company will want to measure how well the human capital investment is performing. What is the return (ROI)? Is the return at an acceptable level for the business as a whole, over time and across segments?
25 Mar. 2013 | Comments (1)
Human Capital Analytics: Foundational Concepts
There are two foundational concepts that underscore the financial nature of human capital: human capital is one of only two forms of business capital; and, the financial resources spent on human capital are an investment, not an expense.
18 Mar. 2013 | Comments (0)
Human Capital Analytics: A State of Chaos
A cohesive context for human capital analytics remains elusive. Unfortunately, as a result of this exhaustive list of organizations that are NOT coming up with a comprehensive and cohesive approach to human capital analytics, chaos still reigns.