- Need to Hire More Top Performers?
- Want to Minimize Time to Fill Positions?
- Are You Using Best Practices in Hiring?
- Learn More About Human Capital Solutions?
Call Us at 480.503.2945
Home |
About |
Contact |
FAQ's |
Support |
My Cart |
Systems |
Management |
Assessment |
Research |
Training |
Links |
| Human Capital - The Age of Talent |
Businesses today bet on two
things: Talent (human capital) and Ideas (intellectual
capital).
The
key to
creating a profitable company is the
talent
of the workforce and its capacity to innovate. As we move forward into the
knowledge economy, it is clear that
people are the profit
lever. Today, a manager's primary
job is to recruit, develop and retain top performing talent.
When an employee leaves the
company
they
take
their skills, competencies, and know-how with them and
the company's
human capital account is depleted.
|
|
Human Capital Metrics Most financial analysts and corporate managers acknowledge that human capital has great leverage potential. Since employee costs often approach 30 to 40 percent of corporate expenses, measuring human capital Return on Investment (ROI) is essential. Without good data on human capital ROI a company simply cannot compete effectively. Human capital metrics are the pivotal levers and tools of the modern organization manager. Everything in an organization results from processes between corporate goals and human capital. Corporate objectives are achieved or not achieved through the actions of people! Human capital metrics create the new business ratios that show the relationships of people and profitability. |
|
Revenue Per Employee The first critical Human Capital ratio is the Total Revenue per employee. The ratio should include: full time employees, part time employees and contingent laborers leading to the number of full time equivalents. |
|
Cost Per Employee The second critical Human Capital ratio is the Total Cost per employee. Human Capital Cost = Pay + Benefits + Contingent Labor + Absence Costs + Turnover Costs. |
|
Profit Per Employee The third critical Human Capital ratio is the Total Profit per employee. Total Revenue - Operating Expenses - Human Capital Costs divided by the number of full time equivalents. |
Home |
About |
Contact |
FAQ's |
Support |
My Cart |
Copyright © 1998-2008 Hire-Smart. All Rights Reserved.
Reproduction without permission is strictly prohibited.
