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
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
Hi Soumya,
Sorry for replying 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 access its human capital as it helps for :
1. Staff training costing for each department/skill set wise-talent pool
2. Provides an insight for the 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 also a best way to measure effectiveness.
4. To also determine the talent pools that are critical to a company's success.
5. to prepare the succession plan for the crucial talent pool.
But before we go beyond to measure the human[/list]
From China, Guangzhou
Sorry for replying 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 access its human capital as it helps for :
1. Staff training costing for each department/skill set wise-talent pool
2. Provides an insight for the 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 also a best way to measure effectiveness.
4. To also determine the talent pools that are critical to a company's success.
5. to prepare the succession plan for the crucial talent pool.
But before we go beyond to measure the human[/list]
From China, Guangzhou
Hi Soumya,
Sorry for replying 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 access its human capital as it helps for :
1. Staff training costing for each department/skill set wise-talent pool
2. Provides an insight for the 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 also a 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
-- forcast the supply and demands of skills (always in flux) as per client's
requirement
a)Forecasting of 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' need.
c) The catagorization of skills and employees capabilities and identification of job roles that are linked with multiple skills.
If we invest on human capital and devise flexible retention plans that are flexible/ more career oriented will also help in reducing turnover rate.
From China, Guangzhou
Sorry for replying 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 access its human capital as it helps for :
1. Staff training costing for each department/skill set wise-talent pool
2. Provides an insight for the 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 also a 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
-- forcast the supply and demands of skills (always in flux) as per client's
requirement
a)Forecasting of 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' need.
c) The catagorization of skills and employees capabilities and identification of job roles that are linked with multiple skills.
If we invest on human capital and devise flexible retention plans that are flexible/ more career oriented will also help in reducing turnover rate.
From China, Guangzhou
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Managing Human Capital.ppt
Human Capital.pdf