HCMI Intro SOLVEPro Demo Deck Aug 2016e

1

HCMI Introduction and Demo -

Aug, 2016

2

About Human Capital Management Institute

HCMI Background: Specialized in HR analysis & measurement

Deep expertise in Workforce Analytics & Planning

Board made up of CFOs and HR heads

Over 40 years of experience

What We Do: Measure the immeasurable in human

capital

Transform workforce data into business intelligence

Provide Tools and Training so HR can Partner with Finance

Workforce Assessment w Strategic Consulting w Training

Best Practices w Workforce Analytics and Planning w Benchmarking

The Human Capital Management Institute (HCMI) was founded on the belief that organizations can, and must, find better ways of measuring their investments in human capital. Our vision of the future is one in which human capital measurement and information is as integral to business decision making as financial information is today.

We Bring Financial Discipline, Standards and Rigor to the HR Function

Have You Found Your Analytics Pot of Gold?

http://www.hcminst.com/news/the-1-million-analytics-roi-challenge/

Human Capital Metrics HandbookTraining and Advisory Support• Workforce Analytics Training• Workforce Planning Training• Custom onsite training

HCMI Products & Services

© Human Capital Management Institute 3

620+ Metrics and Detailed Definitions

Data Integration Blueprint

Workforce Analytics Assessment

Analytic Consulting On-Demand

Analytics COE and Roadmap Design

Statistical Prediction

Correlation Coefficient ( 0-1)

Factors Leading to Increased Turnover

Job Title or Position

Dissatisfaction With Compensation

High vs. Low Turnover Manager

Commute Distance

Driv er #3

Driv er #2

Driv er #1

.50

.33

.27

.02

Low Turnover Impact

High Turnover Impact

Some Turnover Impact

.11

Work Location

Number of Jobs in Last 3 Years .70

Hired Through Employee Referral .19

Init ial Rep orts & Analysis

Data Gat hering

First Good Metrics

HR D ata WarehouseDrill-down, standard reports

Sc enario Analys is

Exter nal Benc hmarking

Context f or decisions

Data Driven Decision

Maki ng!

Turnover, Headc ount, Hiring

HRIS s ystem data

COE Formation

D ata Erro rs

HR Analyti cs M andate

HR Sta ndards Est ablish edLost HR

Credibility

H R d ata/systems Ass essed

HR Data Cle ansed historical data scrubbed

Bus. Units Reject

Analysis

D ata Erro rs Histor ical data

still bad

1st Analytic s Study

Advanc ed Analytic Studies

HR Analysis Vali dated

Integrated H R Database s

COE Lau nches Training Courses

Bus. Uni ts Demand

more

Analytics journey steps

Se tb acks a long the way

Jou rney path and goal

CONSULTING SERVICES

Integrated Dashboard

DASHBOARDS

PRO

TECHNOLOGY SOLUTIONS

Human Capital Financial Statements• Human Capital Impact Statement• Human Capital Asset Statement• Human Capital Flow Statement

Workforce Quantifier™ ROI Calculator• ROI of Workforce Decisions• Cost of Turnover, Cost per Hire

Workforce Planning• Link Workforce and Financial Metrics• Forecast Skills, Costs, Talent and

Productivity

Job Framework Mapping• Integrated Taxonomy 15,000+ jobs• Map Critical Job Roles

Span of Control Optimizer™ Tool• Benchmark and Optimize Spans • Optimize Management Layers

Career Path Quantifier• ROI of Career Path• Build, Buy or Lease Talent Analysis

$$$ Financial Impact

Metrics

Data Blueprint

Predictive Modeling

TRAINING &

SUPPORT

Clients Include…

CONFIDENTIAL, DO NOT COPY OR REDISTRIBUTE

Asking the Right Questions


What If you could answer the following?

1. What is our workforce productivity? Is it improving? How do we rank?

2. Where do our stars come from in Sales? In Operations? In leaders?

3. Is it better to build, buy or rent talent? What is the right workforce cost?

4. What is the ROI of our training investment in the workforce?

5. Which are the strategic critical roles (game winners) vs. operational critical roles (keep us in the game)?

6. Do we know drivers of employee turnover? What about employee engagement and retention drivers?

7. Are leaders effectively managing human capital? Do leaders correlate to employee engagement, retention and performance?

1. Is our workforce headcount the optimal size and shape? What about our workforce Cost?

2. What percent of our workforce is customer-facing or revenue-generating? What is the trend?

3. Is the organization building, buying or renting its’ critical and core talent?

4. What is our workforce productivity?

5. Is workforce productivity increasing, decreasing or static? How are we performing versus peers?

6. What is the marginal return of a dollar invested in the workforce?

7. Is the ROI on Human Capital higher than other investments?

8 Are leaders effectively managing human capital? Do leaders link to engagement, retention, performance?

9 Where does our best talent come from? Which managers are the best talent scouts and coaches?

10.What percent of our workforce is highly engaged? Is it increasing or decreasing?

11.Is there a link between engagement, performance and productivity?

12.What is our leadership and critical role bench strength?

13.Can we forecast our workforce to optimize cost, profit and productivity?

25 Key Human Capital Questions14. What business areas/positions/leaders have the highest

turnover? How do we compare to peers?

15.Are we losing the right people(low performers) or the wrong people(high performers or critical roles/skills)?

16. What is our regrettable turnover rate? Why is talent leaving? Is by design or accident?

17. Is the quality and cultural fit of new hires improving? Can we measure it?

18. Is attracting/recruiting talent impacting growth? What recruiting source yields the best cultural fit?

19. What is the size and cost of our contingent workforce? Is it by accident or by design?

20. What part of our workforce costs are increasing the most? Can we control it better?

21. What is our Total Cost of Workforce as a percent of revenue? Of expenses? How do we compare to peers?

22. Are we investing the right amount in training? Could training improve productivity & profitability?

23. If talent is critical is the training investment adqaute to support the business strategy?

24.Is internal mobility a source of value or not? What percent of the workforce moves internally each year?

25.What percent of open positions are filled internally? What percent of management roles?

© Human Capital Management Institute6

Key Differentiators


• Human Capital Financial Statements(HCF$™) (adopted by Institutional investors)

• SOLVE Metrics online metrics handbook

• Workforce productivity benchmark database (7,000 companies)

3 Layers of IP1. Powerful software (predictive scenario modeling of future workforce)

2. Proprietary data integration “Blueprint” (HR, financial, operational data)

3. Experience, 100’s of successful project insights in SOLVE

Have You Found Your Analytics Pot of Gold? $1.0 Million ROI Guarantee!



SHOW ME THE MONEY!


• 15% productivity gain and lower costs ($55.0 Billion Package Delivery Co. )

• Predicting sales stars pre hire {$1.0 Billion Bank}

• ROI of sales training {$2.0 Billion Retail Co.}

• Location optimization for talent growth {US Regional Bank}

• Employee engagement to revenue impact {$1.0 Billion public Airline}

• 40% voluntary turnover reduction {public, financial services co.}

• ROI of internal vs. external hires {public bank}

$1.1 Billion Annual

$264 Million Annual$1.1 million per sales person

$250 Million Annual $250k per Salesperson

$200 Million 10 years

$96 Million Annual $5 per flight premium

$12 Million Annual

$6 Million Annual

Evolution of a New Ecosystem

© Human Capital Management Institute 2010 9

What if someone owned “financial statements” in financial reporting?

Would this help public companies?

Would this help software technology firms?

Would this help accounting firms?

Would this help HR ! YES !

Human Capital Disclosure Statement™

DashboardsHuman Capital ROI Dashboards

Human Capital Financial

Statements HCFS ™

ProAutomated Analytics

Ecosystem


Evidence-based Human Capital Management

> QUANTIFY > ANALYZE > OPTIMIZEQuantify not just financial info but also the impact of human capital to business outcomes.

Analyze past operations, historical change rate and forecasted performance and benchmark them against the industry average.

Optimize workforce strategy by selecting the interventions that yield the highest ROI impact,

Linking Human Capital to Financial Performance

From Theory to Practice

SOLVE combines Human Capital data with Finance and Operations to quantify hard-to-measure areas, analyze them and ultimately optimize the workforce.

OPERATIONS

FINANCE

WORKFORCE


SOLVE in Action: Workforce Productivity

> QUANTIFY

> ANALYZE

> OPTIMIZE

• Model and Forecast Productivity• Analyze Productivity, Total Cost of Workforce and Profit change rate• Analyze Workforce Cost relative to Revenue and Total Expenses• Benchmarks: Peer Comparison

Use analysis tools to answer the following questions:• What is your workforce productivity? Is it higher than peers? • What is the marginal return of one dollar invested in workforce? • Is the ROI on Human Capital higher than other investments? • Is workforce productivity increasing, decreasing or static?

Analysis Examples:

• Total Cost of Workforce• Return on Human Capital Investment• Human Capital Investment ROI ratio


How SOLVE Helps Users Discover Insights > Validate, Configure and Standardize Data

> Identify Trends & Conduct Initial Analysis

> Build Workforce Scenarios & Conduct Advanced Modeling

> Optimize Workforce Interventions with Quantified Impacts, Cost Savings & Project ROI

2015 2016 2017 2018 2019 2020 $-

$200,000,000

$400,000,000

$600,000,000

$800,000,000

$1,000,000,000

$1,200,000,000

$1,400,000,000

$1,600,000,000

$1,800,000,000

$2,000,000,000

TCOW* Calculated vs Strategic Plan

Calculated Strategic Plan

2016 2017 2018 2019 20200%

5%

10%

15%

20%

25%

22.0%

10.0%

TCOW* % Change


Variables Status Quo Controlled Growth

Workforce Headcount 12%

Average Employee Salary 8%

Bonus & Incentive Pay (Average) 5%

Total HR Costs 11%

$X,XXX,XXX below calculated data$627M GAP v

Calculated Data


Example: Forecast Total Cost of Workforce

Status quoGAP=Labor Cost

growth 22% v 10% Planned

* TCOW= Total Cost of Workforce, aka Total Labor Cost

2015 2016 2017 2018 2019 2020 $-

$200,000,000

$400,000,000

$600,000,000

$800,000,000

$1,000,000,000

$1,200,000,000

$1,400,000,000

TCOW Calculated vs Strategic Plan


2016 2017 2018 2019 20200%

2%

4%

6%

8%

10%

12%

10.0%

10.5%

TCOW % Change

Strategic Plan Calculated

Variables Status Quo Controlled Growth

Workforce Headcount 12% 5%

Average Employee Salary 8% 4%

Bonus & Incentive Pay (Average) 5% 2%

Total HR Costs 11% 5%

GAP closed Strategic Plan Bottoms up fit


Example: Forecast Total Cost of Workforce

Controlled Growth=Labor Cost

growing at Plan 10% Rate

Changes

SOLVE Demo

© Human Capital Management Institute

Workforce Productivity



SOLVE – Productivity Dashboard Example

Index Metric ScoreOne score that summarizes how your organization is doing along with its quantified impacts.

Index Metric in GraphAnalyze the change rate of your index metric and the industry average and plan with SOLVE’s built-in predictive tools.

Scenario ManagerDetailed scores and benchmarks of the components that made up the index metric.

Critical Insights & PredictionsControl workforce dynamics that impact the business down to the job-level details.

Benefits of Using SOLVE Pro – Functional/Financial1. Dedicated HCMI analyst for analytics and planning (1 FTE)

2. External benchmarks for Productivity, Recruiting, Learning, Turnover + more

3. Unlimited “What-If” Scenario Modeling capability for “Forecast” metrics

4. Easily Quantify $1.0M+ future “ROI” impacts (i.e. business case)

5. Link HR and Workforce metrics and data to financial results

6. Low Total Cost of ownership with SaaS (1/2 or lower vs. on-premise solutions)

7. Online version of HCMI’s Human Capital Metrics Handbook;

8. Powerful drill down across multiple dimensions for root cause analysis/ reporting

9. Automated preparation of Human Capital Financial Statements

10. On-demand workforce planning for rapid completion of workforce planning

11. Guaranteed pricing at contract rates


The Human Capital Disclosure Statement


HCMI Background

Jeff Higgins, Founder & CEO Human Capital Management InstituteJeff is a driving force in Workforce analytics at leading companies who transform workforce data into a source of value creation via planning and predictive modeling.

With his unique combination of experience as both a senior HR executive and former CFO, Jeff helps organizations around the world rapidly advance their analytics & workforce planning journey.

He is a regular speaker at HR events, a member of the Human Capital Institute National Advisory Council on Talent Leadership and a founding member of the PwC Saratoga Institute advisory council on metrics.

• HCMI has been focused on workforce productivity since 2009. In 2010 a client asked if human capital data could be presented in reports like financial statements. Thus began a journey to Human Capital Financial Statements (HCFS™).

• After 5 years, working with over 100 organizations, and creating the world’s largest workforce productivity database, we have distilled the complexity of human capital reporting into a single document called a “Human Capital Disclosure Statement.”

Why Should we Bother with Workforce Productivity

© Human Capital Management Institute21

• Institutional Investors are demanding it

• Being utilized by a growing number of forward looking S&P 500 organizations

• Dow Jones Sustainability Index adopted Human Capital ROI Ratio in 2014 (over 900 companies submitted for 2014)

Dow Jones Sustainability Index (DJSI)

22

Introduction to Productivity


…and Human Capital ROI ratio is downright awful.

+21.8%

(19.0%)

REVENUE

Great Revenue per FTE growth!

Do you know your workforce

productivity?

But Return on Human Capital Investment is bad…

(29.2%)

12

Example: Investment Banking Sector, 1996-2012

The Workforce Productivity Paradox

3

MetricsProfit per FTE

Revenue per FTE

Human Capital ROI Ratio

Return on Human Capital Investment

Total Cost of Workforce Percent of Operating Expense

Total Cost of Workforce Percent of Revenue

Human Capital Metrics Drive Stock Price


The top 25% of companies improved HC metrics by 51%, driving 4.0% average annual stock price

gains (CAGR) and 66.0% overall

Low-Performers Mid-Performers Top Performers-10%

-5%

0%

5%

10%

15%

20%

25%

30%

-7.0%

0.4%

9.8%

-2.7%

5.7%

25.4%

10.9%12.9%

26.2%

14.8%

19.9%

28.0%

Human Capital ROI Ratio Return on Human Capital Investment Stock PriceMarket Value (Capitalization)

Human Capital Metrics and Market Performance


Top quartile companies improved workforce productivity 9.8% & 25.4% annually, seeing 26.2% annual stock price gains, double the market average improvement

Top Quartile Bottom Quartile 25th to 75th Percentile

Human Capital and Market Capitalization, Financial Services, October, 2015

Financial Services Industry Change Rates (CAGR) 2012-2014

26

What is in the Human Capital Disclosure Statement


1. Human Capital Impact

1. Income Statement

2. Cash Flow Statement

3. Balance Sheet

Traditional Financial Statements

Human Capital Disclosure Statement

3. Human Capital Cost

2. Human Capital Flow

Examples: • Total Cost of Workforce (TCOW)• Productivity Impact• Human Capital ROI Ratio

Examples: Inflows, Outflows, number of Contingent Staff, Transfers and Promotions

Examples: Employee Salary Cost, Contingent Workforce Cost, Recruiting Cost

Dat

a

#3

#2

#1

26

#44. Management Discussion

Examples: Overall workforce growth, critical and non-critical job roles, etc.

Key Step: Align Human Capital to Finance

27

Human Capital Disclosure Statement


A B

C

A. Human Capital Impact• Integrates Financial and People Metrics• Shows Return on People & workforce productivity

B. Human Capital Flow • Employee + contingent workforce (hires, terms, internal hires)

C. Human Capital Cost• Breakdown Total cost of workforce (TCOW) • Breakdown of HR & training investments

D. Management Discussion • Explanation of significant workforce changes and talent strategy

Stories of changes in talent performance metrics and strategic directionD

Prior Year Current Year % ChgRevenueNet Operating Revenue 1,400,000,000$ 1,540,000,000$ 10.0%Total Headcount (FTE) 15,000 16,400 9.3%Revenue per FTE 93,333$ 93,902$ 0.6%

CostsTotal Operating Expenses* 1,170,000,000$ 1,285,000,000$ 9.8% Total Cost of Workforce (TCOW) 779,950,000$ 861,000,000$ 10.4% TCOW per FTE 51,997$ 52,500$ 1.0% TCOW % of Revenue 55.7% 55.9% 0.4%

ProfitNet Operating Profit 143,750,000$ 159,375,000$ 10.9% Profit per FTE 9,583$ 9,718$ 1.4%

Workforce Productivity Hunan Capital ROI Ratio 1.29 1.30 0.1% Return on Human Capital Investment 18.4% 18.5% 0.4%

Human Capital ROI per FTE 15,333$ 15,549$ % 1.4%

Total Cost of Workforce (TCOW) increasing more than RevenueTCOW was up year-over-year 10.4% above the 10.0% Revenue increase,

negatively affecting workforce productivity.

Workforce ProductivityBoth workforce productivity metrics

improved, however the rate of growth is minimal and well below the 3%

productivity gains of competitors.

Profit per FTEOperating Profit increased 10.9%, and profit per FTE 1.4%, partly offsetting the negative impact of higher TCOW. Further profit gains vs. peers seem

unsustainable without further productivity gains.

Revenue per FTE is upRevenue increased 10.0% while

headcount increased 9.3%, resulting in a revenue per FTE increase of .6%

25© Human Capital Management Institute

A. Human Capital Impact

29

B. Human Capital Flow


Increases in Support StaffWhat is driving increased support

staff? Is this why TCOW is increasing faster than revenue?

Contingent Workforce Is contingent workforce a feeder group for critical roles? A low cost workforce strategy or a gap filler? How does contingent

workforce fit in the strategic company direction?

Management Internal Hire Rate75 Internal Staff were promoted into mgmt however 115 were hired externally or only

39% of internal staff was considered ready for management

Critical Job Roles - SalesWhile 860 sales people were

hired, (450) departed. Why? Are they high or low performers, new hires or veterans? Co. Growth and success is heavily reliant on this

group.

Buy Build

Rent

30

C. Human Capital Cost


Absence Lost Days and CostThese costs are increasing rapidly, was this due

to one time events or longer term trends?

Benefit Costs The largest rapidly rising cost is benefit costs for employees. What is the plan to

better manage these costs? How does the organization compare to peers in this area?

Are Training & Development costs aligned with the company growth strategy? Is the organization “Building, Buying or Renting” its

best current and future talent?

Total Cost of Workforce is increasing as a higher rate than revenue, a long term predictor of declining workforce productivity. How will

the company better manage these costs as they execute on their growth plans?

Research on Human Capital Reporting

32

What To Include in Human Capital Reporting


Source: http://ww2.cfo.com/people/2012/04/proposed-standard-calls-for-human-capital-disclosure/ by David McCann

HR Reporting Standards Recommended by American National Standards Institute (ANSI)

http://ww2.cfo.com/people/2012/04/proposed-standard-calls-for-human-capital-disclosure/


Human Capital Disclosure Requirements MatrixI = Included in Management's Human Capital Discussion

Inte

rnat

iona

l Int

egra

ted

Rep

orti

ng C

ounc

il

OM

ER

S O

ntar

io

Mun

icip

al E

mpl

oyee

s R

etir

emen

t Sy

stem

Sust

aina

ble

Acc

ount

ing

Stan

dard

s B

oard

, SA

SB

IRR

C I

nsti

tute

-HB

S,

Mat

eria

lity

of H

uman

C

apit

al t

o Fi

n. P

erf.

GR

I –

Glo

bal R

epor

ting

In

itia

tive

Acc

ount

ing

for

Peo

ple

Tas

k Fo

rce

2003

Smar

ter

Ann

ual R

epor

t 20

15, C

reel

man

, Bas

si

Dow

Jon

es S

usta

inab

ility

In

dex

2014

-201

5

AN

SI-S

HR

M I

nves

tor

Gui

delin

es f

or R

epor

ting

H

C 2

012

CIP

D V

alui

ng Y

our

Tal

ent

2014

- 20

15

NA

PF

– N

atio

nal

Ass

ocia

tion

of P

ensi

on

Fund

s

ISO

:NW

IP N

-141

, HC

R

epor

ting

for

Int

. & E

xt.

stak

ehol

ders

TOT

AL

HC

Dis

clos

ure

St

atem

ent

Workforce Composition

Workforce Headcount 10

Workforce Cost 9

Workforce Productivity 9

Return on Workforce or People 9

Workforce Composition-Breakdown 9

- Contingent Labor Cost 6

- Contingent Labor Force Size 6

- Benefits (i.e. full-time v part-time) 6

- Geographic-Global Workforce Distribution 5

- Revenue per Employee or FTE 4

- Demographics, Diversity (i.e. Age, Gender) 3 I - EBITDA per employee or FTE 3

- Full-time v part-time 3

- Job Level 3

- Talent Efficiency/Effectiveness 2

- Proportion Professional qualified employees 2

- Work Hours 1

Workforce Skills and Capabilities

- Total Training Investment 9

- Leadership Depth/Career devpmt/Succession 8

- Talent Management 6

- Competencies and Skills 6

- Internal Hire Rate 6

- Average training hours per employee 3

- Leadership Quality/ Effectiveness 3

- Training Types (formal/informal, technical, apprentice) 2 I - Training by Job Group 2 I - Number of Courses Taken 1 I - Number of PhD's (or total # of Patents) 1 I

Overarching HC Disclosure Objectives

Human Capital Performance, Productivity 11

Comparable across entities/industries 11

Transparancy (clear, complete, reliable, simple) 10

Validity (Useful, link to financial results) 10

Material, Auditable Information 9

Sustainabiltiy of Human Capital 8

Business and Management Governance 8

Human Capital Risks 7

Strategic, Future Directional Focus 7

Connectivity of Information 6

Superior Human Capital Talent Decisions 5

Workforce Stability

Workforce Turnover (i.e. terminations) 8

- Regrettable or Voluntary turnover 7

- Pay policies & ratios (mgmt, gender equiity) 7

- Turnover by Category or level (EEO) 2

- Recruitment Costs 2

- Applicants per position/ Brand Awareness 2 I - Offer/acceptance statistics 2 I - Retention rates (demographic) 2 I - Levels of skill shortages 2 I - Pension/Retirement program (cost, % eligible) 1 I - Industrial relations issues 1 I - New Hire Retention Rate (12 month retention) 1 I

Workforce Culture

Other - Human capital discussion & analysis 2

- HR Cost or Investment 1

- HR Return on Investment 1

TOTAL RECOMMENDATIONS 12 12 14 15 20 20 25 25 31 31 48 50 59 46

% of Requirements Met 78%

Category, Element, Metric or Dimension

Human Capital Disclosure Requirements Matrix

I = included in Management’s Human Capital Discussion


Human Capital Disclosure Requirements Matrix - continued

I = included in Management’s Human Capital Discussion

Case Studies

36© Human Capital Management Institute

Case Study: BroadTek CommunicationsRevenue Prior Year Current Year Variance % ChgNet Operating Revenue $4,114,540,000 $4,444,560,000 $330,020,000 8.0%Total Workforce Headcount (FTE) 4,645 4,750 105 2.3%Revenue per FTE $885,800 $935,697 $49,897 5.6%

CostsTotal Expenses $2,788,752,921 $2,809,406,376 $20,653,455 0.7%Total Operating Expense $2,262,997,000 $2,377,839,600 $114,842,600 5.1%Total Cost of Workforce (TCOW) $447,661,952 $467,567,712 $19,905,760 4.4%TCOW Percent of Revenue 10.9% 10.5% -0.4% -3.3%TCOW Percent of Expenses 16.1% 16.6% 0.6% 3.7%TCOW Percent of Operating Expenses 19.8% 19.7% -0.1% -0.6%

ProfitEBITDA(1) $1,316,652,800 $1,511,150,400 $194,497,600 14.8%Net Operating Profit $573,155,422 $680,017,680 $106,862,258 18.6%Profit per FTE $123,392 $143,162 $19,770 16.0%

Productivity and ROI of Human CapitalTotal Market Capitalization (2) $6,304,709,642 $6,800,176,800 $495,467,158 7.9%Average Market Capitalization Value per FTE $1,357,311 $1,431,616 $74,305 5.5%

Human Capital ROI Ratio 3.96 4.50 0.54 13.5%Return on Human Capital Investment 128.0% 145.4% 17.4% 13.6%

TOTAL WORKFORCE PRODUCTIVITY IMPACT: $355,630,545 $700,578,523 $344,947,978 97.0%

1

1

2

2

2

33

Key Findings: TCOW growing slower than Revenue and Profit per FTE Positive HC ROI Ratio and Return on HC Investment

Case Study: BroadTek Communications


37

ClearTel RayFi BroadTek$0

$200$400$600$800

$1,000$1,200$1,400

Revenue per FTEProfit per FTETotal Cost of Workforce per FTEProductivity Gain(Loss) per FTE

Note: All Dollars in Thousands KPI = Key Performance Indicator FTE = Full Time Equivalents

ClearTel RayFi BroadTek0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Revenue per FTE Profit per FTE

Total Cost of Workforce per FTE

Human Capital ROI Ratio Return on Human Capital Investment

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

ClearTel RayFi BroadTek

Current Financial KPIs Prior-Current Year KPI Variance

Prior-Current Year Productivity Variance

1Poor

Performance Relative to

Competitors

AveragePerformance

Relative to Competitors

StrongPerformance

Relative to Competitors

2

3 3




The Human Capital Asset Statement

Human Capital Headcount Deployed Prior PeriodPercent of Total Current Period

Percent of Total Variance

Employees 4,395 94.6% 4,535 95.5% 3.2% - Management & Senior Leadership 610 13.1% 615 12.9% 0.8% - Professional Staff 1,310 28.2% 1,405 29.6% 7.3% - Sales Staff 730 15.7% 805 16.9% 10.3% - Specialists and Technicians 515 11.1% 530 11.2% 2.9% - Skilled Trade Staff 115 2.5% 105 2.2% -8.7% - Operations Staff 210 4.5% 210 4.4% 0.0% - Service Staff 550 11.8% 560 11.8% 1.8% - Administrative Support Staff 250 5.4% 220 4.6% -12.0% - Laborers and Helpers 105 2.3% 85 1.8% -19.0%

Contingent Staff 250 5.4% 215 4.5% -14.0%Total Workforce 4,645 100.0% 4,750 100.0% 2.3%

Step #1: Measure Changes in Workforce Headcount• Total Employees• Sales Staff and Service Staff = Core Workforce• Administrative + Laborers and Helpers = Non-Core Workforce

Step #2: Quantify Differential Value of High vs. Low Value Add Roles• Core Job Roles add Greater Value• Critical Job Roles add Greater Value

39



Optimizing The Workforce by Measuring Job Roles

Talent Management Impact Findings

40

$ ROI from Change in Average Days to Start

Scofield reduced Average Days to Start by (-5) for critical revenue generating roles, with savings of

$1.5 million due to 1,250 productive days saved at $1,200 in lost

productivity per day.

Internal vs. External Cost per Hire Differential

Scofield saves $4,500 in recruiting costs on positions filled internally. NOTE: professional

or manager positions filled may have larger savings while low level positions may lower or

$0. (see Asset Statement for details)

Internal vs. External Hire Compensation Cost Impact Scofield saves $1,000 in total compensation,

a part of Total Cost of Workforce (TCOW), on average, for every role

filled internally. NOTE: Professional or mgmt

positions filled may have larger savings while low level positions may have $0 or negative savings (see Asset

Statement for details)

Span of Control ImpactScofield increased overall management span of control from 12 to 12.6, saving

the need to hire over 100 new managers, a Total Cost of Workforce

productivity savings of $10.06 million.

41

HCMI Analytics and Planning Vision


• Allow organizations to measure workforce value creation

• Link metrics to business results & drive company business strategies

• Create a bridge between the Workforce and Traditional Financial Measures

HCMI Intro SOLVEPro Demo Deck Aug 2016e

Documents

Transcript of HCMI Intro SOLVEPro Demo Deck Aug 2016e