{"id":33100,"date":"2015-06-08T11:10:55","date_gmt":"2015-06-08T11:10:55","guid":{"rendered":"http:\/\/vskills.in\/certification\/blog\/?p=33100"},"modified":"2024-04-03T13:17:47","modified_gmt":"2024-04-03T07:47:47","slug":"human-capitalism","status":"publish","type":"post","link":"https:\/\/www.vskills.in\/certification\/blog\/human-capitalism\/","title":{"rendered":"Human capitalism&#8230;"},"content":{"rendered":"<p style=\"text-align: center\"><a ref=\"magnificPopup\" href=\"http:\/\/vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/06\/Human-capitalism...1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-33251\" src=\"http:\/\/vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/06\/Human-capitalism...1.jpg\" alt=\"Human capitalism...\" width=\"259\" height=\"194\" \/><\/a><\/p>\n<p>Today the momentum for human analytics is growing but its potential is unrealized.\u00a0 While many HR Departments use metrics today, their use and application are:<\/p>\n<ul>\n<li>\u0083 Often inconsistent; different companies employ different kinds of metrics in different ways<\/li>\n<li>\u0083 Data is collected for the sake of collection or to justify some activity<\/li>\n<li>\u0083 Metrics are out there by themselves, and are not tied to business performance or adequately aligned\u00a0\u00a0 with organizational strategies<\/li>\n<\/ul>\n<p>The reasons why analytics are not being more widely used are many, including gaps in stakeholder perspectives. Barriers to fully realizing analytics are:<\/p>\n<p>\u2022 Investors pressure companies to meet short-term earnings rather than long-term milestones. Human<\/p>\n<p>capital analytics and its predictive business value is not one of their traditional tools.<\/p>\n<p>\u2022 HR has not yet reached the level where it can consistently and quantitatively demonstrate linkage to<\/p>\n<p>value creation, causing many CEOs and CFO\u2019s to view HR skeptically as a simply a cost-centre.<\/p>\n<p>\u2022 This barrier is enhanced through differences between industry and organizational size.<\/p>\n<p>The knowledge and experience is often lacking to turn metrics into analytics and analytics into strategies.<\/p>\n<p>\u2022 Organizational cultures that foster silos inhibit using human capital analytics. Often data related to<\/p>\n<p>human capital is disconnected from business operations, so the data is not integrated, and relationships<\/p>\n<p>between people and business measures are not connected. Silos create gaps because managers focus on<\/p>\n<p>their own area of control. Manufacturing departments report production output; HR reports people data.<\/p>\n<p>\u2022 Lack of standardization of definitions, terminologies, and formulaic elements make metrics different<\/p>\n<p>from one organization to other, and makes it difficult to build on generalizable knowledge beyond one\u2019s<\/p>\n<p>Organization.<\/p>\n<p>\u2022Regulatory and Financial requirements for valuing human capital do not currently exist.<\/p>\n<p>\u2022Whether standards should be pushed upon business and HR by regulators or pulled by demand is a key<\/p>\n<p>question. (FASB, etc) Many believe regulation would be a good thing for HR because if human capital<\/p>\n<p>investments such as training were treated as line-item investments, instead of costs, then investor<\/p>\n<p>communities would see HC as the value driver it is.<\/p>\n<p>\u2022Metrics are often non-linear. Metrics are messy and sometimes composed of soft elements (Shared<\/p>\n<p>valued, skills, style, staff) and can be ambiguous and hard to quantify.<\/p>\n<p>&nbsp;<\/p>\n<p>While there are challenges to be met, much can be done to operationalize human capital data.<\/p>\n<p>\u2013Conceptualize metrics in three ways:<\/p>\n<ul>\n<li>\u0083 Efficiency Metrics<\/li>\n<li>\u0083 Effectiveness Metrics<\/li>\n<li>\u0083 Predictive Metrics<\/li>\n<\/ul>\n<p>\u2013 HR facilitates the process to involve managers about what metrics are relevant. These are metrics the<\/p>\n<p>organization and managers own; not HR.<\/p>\n<p>\u2013 Fewer metrics are better than more metrics<\/p>\n<p>\u2013 Simpler is better than complicated<\/p>\n<p>\u2013 Usually better to pilot a project with a smaller, human capital supportive\/friendly department in your<\/p>\n<p>Organization.<\/p>\n<p>\u2022<b>Efficiency Measures<\/b><\/p>\n<p>\u2013 Often we over-report efficiency measures because it\u2019s easy<\/p>\n<p>\u2013 Cost-per-hire, time-to-fill, number of training hours, HR Costs<\/p>\n<p>\u2022 <b>Effectiveness Measures<\/b><\/p>\n<p>\u2013 Demonstrates how HR practices\/measures relate to firm performance<\/p>\n<p>\u2013 For example, increased productivity by RsX by lowering time-to-fill, lowered legal fees by RsX for<\/p>\n<p>sexual harassment complaints through mandatory harassment training.<\/p>\n<p>\u2013 Increase productivity by lowering voluntary turnover through key HR initiatives:<\/p>\n<ul>\n<li>\u0083 Management training class.<\/li>\n<li>\u0083 Team-building for areas where turnover was higher.<\/li>\n<li>\u0083 Improved communication about how to utilize HR Services.<\/li>\n<\/ul>\n<p><a href=\"http:\/\/www.vskills.in\/certification\/Human-Resources\">Click here for government certification in Human Resources<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Today the momentum for human analytics is growing but its potential is unrealized.\u00a0 While many HR Departments use metrics today, their use and application are: \u0083 Often inconsistent; different companies employ different kinds of metrics in different ways \u0083 Data is collected for the sake of collection or to justify some activity \u0083 Metrics are&#8230;<\/p>\n","protected":false},"author":1188,"featured_media":33251,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_joinchat":[],"footnotes":""},"categories":[1529],"tags":[2105,697,827,1728],"class_list":["post-33100","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-human-resources-2","tag-capital","tag-hr","tag-management","tag-training"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Human capitalism<\/title>\n<meta name=\"description\" content=\"human capitalism; the assets of an organization. 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