Who are Australia's most valuable employees?

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Is the future of work bigger companies employing less people? The Australian perspective

About the research I love thinking about the future of work. And recently there’s been a lot of discussion that the future of work means bigger companies employing less people. It’s hard to draw any other conclusion when you look at deals like the Facebook acquisition of WhatsApp, a US$19 billion dollar acquisition with just 55 employees. I’ll save you pulling out the calculator –Facebook are paying an incredible $350m or so per employee! I wanted to understand the Australian perspective on whether we’re seeing the start of a major disconnect between number of employees and firm value. To do this we’ve spent some time running the numbers on the ASX 100. And the results might surprise you! If you’ve got questions about this data, or want to learn more about how Cognology helps over 250 Australian companies get the most out of their employees, please don’t hesitate to get in touch. Kind regards, Jon Windust CEO – Cognology

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The100 largest companies in Australia (the ASX 100) employ1.4m people

So at an individual level, the market values each Australian employee at just over $1m ($1,002,617 to be exact)

At an aggregate level, these 100 companies are worth just over 1.4

trillion dollars (yes, with a T!)

3 Source: Google Finance (FactSet) – September 2014

Are you worth

$1,002,617?

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The big earners in the US work in the cloud

Here in Australia the big money is still in the ground

12.2

4.2 2.2

1.0 0.7 0.5

Property and Infrastructure

Financials, IT and Engineering

Mining, Heavy Manufacture and

Transport

Healthcare and Science Consumer Product Manufacture and

DistribuBon

Customer Service and Retail

Average market capitalisation (A$M per employee)

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Source: Google Finance (FactSet) – September 2014

Australia’s most valuable employees work at Transurban Each employee is worth nearly A$32m in market capitalisation!

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31.8 28.8 28.6 28.0

21.0 17.5

15.6 13.2

10.9 10.1 9.5

Market capitalisation (A$m per employee)

Australia’s most valuable employees work at

Transurban

7 Source: Google Finance (Factset) – September 2014

31.8 28.8 28.6 28.0

21.0 17.5

15.6 13.2

10.9 10.1 9.5


The majority of the top 10 is

infrastructure, property and oil&gas


31.8 28.8 28.6 28.0

21.0 17.5

15.6 13.2

10.9 10.1 9.5


SEEK is the only technology company

to make the top 10


What about Australia’s least valuable employees? ?

10

0.22 0.21 0.18 0.18

0.12 0.12 0.11 0.10 0.09 0.09 0.09


The bottom 10 is dominated by retail, engineering and

logistics


0.22 0.21 0.18 0.18

0.12 0.12 0.11 0.10 0.09 0.09 0.09


On a market capitalisation basis, Toll, Qantas, Myer and Downer are all worth

less than $100k per employee


THE DIFFERENCE BETWEEN THE VALUE OF A TRANSURBAN AND DOWNER EMPLOYEE IS AN

ASTONISHING 367 TIMES

367x $0.09m

$31.8m


Cognology is an Australian company making Talent Management software for the future of work. Over 250 businesses use Cognology to empower cutting

edge talent strategy.

We build technology to help our clients with performance, engagement, retention and learning for their entire employment lifecycle. Our research and development efforts are continually looking for ways to make it easier for our

customers to execute business strategy, develop their people and do great things together.

Learn more about Cognology at http://www.cognology.com.au/

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Who are Australia's most valuable employees?

Business

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