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1、CONFIDENTIAL This presentation contains proprietary methodologies and tools which are only for review and remain the property of Mercer Human Resource Consulting. These methodologies and tools cannot be used or disclosed without written consent by Mercer Human Resource Consulting. 2004, Mercer Human
2、 Resource Consulting LLC,A New Approach to Human Capital Strategy: Helping Human Resources Become a Strategic Partner Workforce Planning and Development Conference,Agenda,Less ART, more SCIENCE: A New Approach to Human Capital Strategy Understanding the dynamics of your Internal Labor Market Case St
3、udies Q&A,Less ART, more SCIENCE: A New Approach to Human Capital Strategy,Human Capital is one of the largest expenses that organizations understand the least about,As a result, even modest gains in the efficacy of HR management can deliver sizeable gains to the bottom line.,36% of revenue,The ques
4、t to find the Holy Grail has led to a proliferation of ideas and approaches,The question is no longer whether to measure but . . .,. . . which measures most directly impact your business performance?,. . . which measures are most relevant to your organization?,A framework for HR Transformation,HR St
5、rategy (Strategy, structure, processes of the function),Human Capital Strategy (The “people” complement to business strategy management of the workforce),Value creation,Cost management,Organizations must continually balance the need for prudent cost management with the requirement to create / sustai
6、n productivity and business value,Where is your organization currently focused?,HR Strategy (Strategy, structure, processes of the function),Human Capital Strategy (The “people” complement to business strategy management of the workforce),Value creation,Cost management,Workforce impact of HC program
7、s / policies,Co-Sourcing and Outsourcing of HR functions,Improved HR service delivery,Streamline HR processes,Measuring business impact of HC programs / policies,Overall labor cost management strategy,Outsourcing / Off-shoring,HR Talent Management,Rewards linkage to Strategic Objectives,Cultural Tra
8、nsformation,Strategy dependent vs. strategy neutral costs,Demand Management,Leveraging technology investments,Leverage workforce data,A framework for examining Human Capital Strategy,Human capital strategy is a blueprint that helps an organization secure, motivate, and manage its workforce to accomp
9、lish business goals,The key resides in being able to causally link human capital tactics and practices to workforce and business outcomes,Balanced Scorecards people component,MONITORING & ACCOUNTABILITY,Capabilities Behaviors Attitudes Engagement Satisfaction,WORKFORCE OUTCOMES,Anecdotes,Reactive ch
10、ecks,Simulations and fore-casting,Correlations,Benchmarks,On-going reports,Causation,Most powerful,Data,Information,Insights,Predictions,Stories,The “Art of HR” is slowly being replaced by the Science of Human Capital Management,Advances in information technology and analytic methods are making it p
11、ossible for organizations to manage investments in human capital in a way that can have a measurable impact on business performance.,The most powerful approaches move beyond benchmarking & correlation to cause and effect,Source: 330 HR interventions that impacted productivity 1975-1985, Richard A. G
12、uzzo et al, University of Maryland (updated 1996 by Mercer).,Why benchmarking human capital practices often misses the mark,Research has shown wide differences in the average effects of specific HR interventions. Average effects are not a sufficient basis to guide the development of a Human Capital
13、Strategy for a particular organization due to the overriding importance of business context. Context reveals the dynamics unique to each organization. It varies even among direct competitors and across business / functional units within the same organization.,Human Capital Tracking Metrics,HC Scorec
14、ard,External Market Database,HRIS and Payroll,Other Internal Sources (e.g. Applicant Files; Training Inventory),Employee Sensing,HC Management Database,Labor Market Data,Market and Industry data,Performance Database,Company or business unit financials,Data on quality and operational performance,Cust
15、omer Data,COMMON DATA PLATFORM,A Human Capital Data Warehouse can be constructed by integrating multiple sources,Statistical Modeling & Forecasting,Size Employee heterogeneity Risk Pay Employment Variability Prior Turnover Branch/team Pay structure Incentive Payouts Total Dispersion Supervision Stru
16、cture/complexity Spans Chain Stability Workload Organization profile Experience Tenure Education NE/E Mix FT/PT Mix Recruiting source Performance (level & volatility) Turnover rate,Age Gender Ethnic background Education Training Experience Number and Duration of Jobs Prior Industry Prior job type Job / occupation Exempt / non-exempt status Full time / part time status Tenure Current job Organization Wage Level Growth Le
