MEASURING HUMAN CAPITAL A TEST MODEL BY SOHAIL RIZVI.

MEASURING HUMAN CAPITALMEASURING HUMAN CAPITAL

A TEST MODEL

BY

SOHAIL RIZVI

Measuring Human Capital

Challenges in recession economyChallenges in recession economyLow cost of Production / Services

– Predictable & consistent processes– Minimum or no wastage– Innovative use of existing resources

Technology leveraged work systems

Multi-tasking High quality at competitive priceRapid Changes


What is HR doing to meet these Challenges?What is HR doing to meet these Challenges?

HR roles need to be delegated at proper managerial levels

Be part of Core business processes to provide better services

Look out for best business practices and industrial trends to become an effective change agent


Management Rule # 1Management Rule # 1

Anything does not get measured does not get improved

Are you measuring effectiveness and efficiency of HR functions

Are your HR decisions based on data or opinions


HR METRICS! Organizational LevelHR METRICS! Organizational Level

Employee Contribution Ratio

Total Revenue / Total Employees

Compensation to Revenue Ratio

Total Revenue / Total Remuneration

Salary to Cost ratio Total Costs / Total salaries

Training Effectiveness Revenue Increase / Total Training cost


HR METRICS! Departmental LevelHR METRICS! Departmental Level

Absence Ratio Total Absence days / Total Working Days

Resignation Rate Total Voluntary Resignations / Total Employees

Cost per Hire No. of new hires/ Recruitment Costs

HR Cost Effectiveness

Total HR costs / Total FTE


HR METRICS! Human Capital HR METRICS! Human Capital

Percentage of employees leaving because they are not satisfied

Percentage of critical positions without succession plan

Training hours per employee Percentage of employees in each

job occupation Percentage of minorities / women Percentage performance


Prove that people are your asset!Prove that people are your asset! How do you evaluate your physical

assets?

HR should evaluate people on market value of their competencies.

The proposed measuring system is based on competency valuation

To use this model, JD should include job competencies in addition to responsibilities and specifications


Competency / Training CardCompetency / Training CardName Hamayun Aslam

Title Quality Assurance Manager

Email [email protected]

Phone 0321 4454771

Training Status Good

Required course completion 70%

Banking Operations Yes

QA standards for banking Yes

Leading teams Yes

Six Sigma Green belt No

Performance Management Yes

Budgeting & Planning No

MS projects Yes

Training of Trainers Yes

Minitab No

Office management Yes


Understanding Competencies Understanding Competencies

Core Competencies Supporting Competencies

OR

Technical Competencies Behavioral Competencies


Proposed ModelProposed Model

Human Capital Measurement model for a Bank

MEASURING HUMAN CAPITAL A TEST MODEL BY SOHAIL RIZVI.

Documents

Transcript of MEASURING HUMAN CAPITAL A TEST MODEL BY SOHAIL RIZVI.