Human Capital Measurement
- …you could predict who was going to resign from your organisation and why…months before they tendered their resignation. Would it change the game on how you manage and retain your high performers?
- …you could manage your workforce costs on a daily/weekly basis and run different scenarios as the marketplace changes around you. And once you set a plan, monitor pay periods against key workforce performance and business value metrics. Would it change the conversation in the c-suite?
Data Rich, Knowledge Poor
With an emphasis on cutting operating costs, HR departments are increasingly being asked to demonstrate their own value and how investing in the workforce drives revenue and influences the top and bottom line. Driving the trend for human capital measurement are several factors:
- The need for foresight — moving from reactive to proactive.
- Falling technology and data costs; new models and tools.
- Data-savvy leaders.
Bridging the Gap
By taking a more strategic approach to decision making and using advanced analytics to turn HR data into actionable business intelligence, companies can leverage their existing ERP systems, data warehouses, and smaller-scale HR point solutions for critical insights into the workforce. These insights, in turn can help guide decisions that are critical as the business confronts a range of issues. We believe this capability is not a “nice to have” – it’s a “must have” going forward.
If you’re not using workforce data and analytics to drive your talent decisions, you may be behind the curve — and at risk of losing your competitive edge. As HR works with business leaders on the front lines, analytics are becoming critical in making more effective decisions related to workforce planning and recruitment, compensation, development programs, and deploying critical talent.
Bottom line benefits
Effective Workforce Analytics can help organisations in their efforts to:
- Scrutinise workforce performance trends;
- Develop human capital competitor intelligence;
- Inform the content of balanced scorecards;
- Develop short and long-term evidence-based human capital strategies;
- Identify opportunities for cost savings, efficiency gains, service improvements and effective HR function service delivery;
- Provide stakeholders with solid comparative data and identify performance gaps;
- Improve workforce planning and forecasting;
- Justify and demonstrate ROI on people investments;
- Avoid costly workforce-related mistakes;
- Increase the competitiveness of people policies, overall people performance and value to stakeholders;
- Measure the efficiency of HR practices;
- Align HR as a strategic partner to the business; and
- Link human capital to shareholder value.
Workforce analytics in action: the Value of a Granular Metric on the Bottom Line
- By reducing a telecoms organisation’s absenteeism to the highest performing industry-related benchmark through specialized wellness strategies, our client achieved an annual cost saving of R13m. Cost reduction was the main business objective for that year.
- By designing retention strategies to address the excess Resignation rate above a target suggested for the appropriate financial services sample group, Deloitte assisted its client to achieve an annual cost to the business in the region of R12m per annum. These strategies targeted critical workforce segments whose value to the organisation was mapped directly to the bottom line.
How Deloitte can Assist
|We help organisations to guide their workforce strategically and maximise their investment in people. We do this by establishing and addressing metrics that quantify and correlate the contribution of human capital to organizational performance.|
Deloitte specialises in helping organisations integrate third party data with internal sources to provide new insights and options to complex workforce challenges. Specifically, our analytics services, tools and solution sets are designed to help organisations in the areas of: organizational productivity; Talent Resourcing and Brand Effectiveness; Leadership; Workforce Planning / Management; Staff Movement; Learning & Development; Employee Engagement / Retention; HR Effectiveness and Career and Succession Planning.
Through a practical partnering approach, Deloitte offers a broad array of measurement and benchmarking data that spans the full human resources spectrum. Our Analytics Tools use data modelling and predictive analysis to find answers to complex questions by identifying corollary relationships within the workforce data and isolating the levers that impact performance.
We provide clients with a combination of access to intelligent human capital metrics and benchmarks and leading edge human resource advisory capabilities to help guide their people strategies and maximise the return on their human capital investments.