Why measure HR effectiveness?
People have traditionally been regarded as an intangible asset. Average market capitalization to book value ratio is 6 to 1 – meaning that for every USD or EUR that investors pay for the assets on the balance sheet, they are paying another 6 USDs or EURs for intangible assets: processes, customers/brands and people. Therefore organisations that succeed in maximising the value of their people will make a significant impact on the value of their business. In these current market conditions, chief executives, finance and human resources directors are under increasing pressure to “measure” their human capital. Stakeholders want clear, evidence-based explanations how people are creating value for their organisation.
Increasingly HR is expected not only to implement business strategies but to also help shape these strategies. At the same time there is pressure on HR to deliver traditional administrative services more efficiently. Sometimes the HR directors feel that some HR processes are inefficient and the HR function could perform better, but they lack hard evidence and exact benchmarking figures to prove it and struggle to gain investment support for their new HR initiatives.
It is Saratoga’s mission to translate human capital into something tangible – measurable and comparable like any other organisational asset. By using the information from the Saratoga HC Benchmarking Survey, you will gain an understanding of your existing human capital profile and be able to draw conclusions upon the profile that you need to build in order to compete successfully.
Saratoga background
The Saratoga Institute was founded in USA in 1977 and is recognised globally for being a thought leader in human capital measurement and benchmarking. The Saratoga benchmarking and best practice system was successfully launched in Europe in 1993. Since 2003, when PricewaterhouseCoopers acquired Saratoga, the human capital measurement and benchmarking services have been extended to new territories, such as Eastern Europe and Asia. Currently, the global database of Saratoga contains data about key human capital effectiveness metrics from more than 14 000 organisations covering all business industries and geographic regions.
The purpose of Saratoga’s Human Capital Benchmarking Survey is to provide organisations with the essential information to work with their people more effectively. It will help you measure the impact of the HR management system on your business, to indicate performance gaps and to provide top management and shareholders with solid comparative data.
PwC Bulgaria consultants have been trained and certified to utilise Saratoga tools and methodology. We are glad to announce that in the year 2008 we are launching the first Human Capital Benchmarking Survey in Bulgaria.
The Saratoga HC Benchmarking Survey report will cover the following:
· What is the impact of the Human Resources management system on business?
· How is Human Capital productivity measured?
· Is the HR function effective, appropriately structured and positioned to have strategic impact?
· What is the return on investment for each full-time employee?
· Are your competitors doing better?
· What is the cost of staff turnover, absenteeism and recruitment?
The Saratoga HC Benchmarking Survey provides more than 50 metrics for human capital effectiveness benchmarking and comparison to other organisations. The metrics usually span to the following areas:
· Organisational financial impact (for example, revenue per employee)
· Compensation & benefits (for example, performance related pay)
· Engagement and behaviours (for example, staff turnover and absenteeism)
· Resourcing (for example, cost per hire)
· Learning and development (for example, L&D investment per employee)
· HR function (for example, HR cost per employee)
· Other functions including Finance, Marketing, IT.
Participation benefits
· A free summary report representing in detail 5 key indicators
· Option to purchase the full survey report
· Comprehensive metrics formulae that can be used for further internal measurements and analysis
Survey timetable
Phase one: Apply for participation: January – February 2008
Phase two: Data collection: March – May 2008
Phase three: Data processing: June 2008
Phase four: Report delivery: July 2008
Contact PwC Bulgaria Saratoga team
Should you be interested in participating in the survey, please fill in the application form and fax/send it back to the following e-mail: saratoga.survey@bg.pwc.com.
Application form
