RETURN ON HUMAN CAPITAL INVESTMENT METRICS 

Human Resource Workforce Analytics (Metrics) is a performance management concept which helps organizations measure how effective the link is between their human resources strategic objectives/initiatives to overall company performance.  It is not uncommon for human capital professionals to measure for efficiencies (impact of processes) but not effectiveness (impact on the Profit and Loss statement) for the human capital investment.  Analytics assists organizations in translating its mission and strategy into a comprehensive set of performance measures, through which integrated organizational performance can be managed.   Not only has it been embraced by many global corporations, and not-for-profit entities, but it has also been implemented by many high-performance academic institutions, as well.  It enables managers to understand what areas in human capital should be further exploited and which ones need to be retooled.   

Our metrics offering includes:   

·    Facilitating dialogue with human capital professionals to develop the business case for measuring the human capital investment

·    Helping human capital professionals understand basic business principles and Human Resource’s impact

·    Address current trends about quantifiable metrics, as well as why and how HR can address them

·    Understand how HR can prepare to be better strategic business partners

·    Clarify which metrics are important

·    Discuss where and how to start with measurement

·    Help your team work through various case studies which will allow participants the opportunity work through each metric before tailoring them for internal use

We have studied and mastered 13 quantifiable (correlation to the Profit and Loss statement of a company) and formulated metrics that can clearly articulate the investment in human capital.  The metrics are:  

1.      Human Capital ROI

2.      Training Costs Per Employee

3.      Time To Fill (Quantified) Value Add Metrics

4.      Turnover Cost Calculation

5.      Turnover Calculation

6.      Time To Fill

7.      Cost Per Hire  

8.      Absenteeism Rate Per Employee

9.      Employee Complaint Rate

10.    Litigation Rate

11.    Vacancy Cost Calculation

12.    Vacancy Rate Calculation

13.    Attraction Metric

14.    Training Return on Investment (TROI)

15.    Profit Per Employee Revenue Per Employee