Executive Forum Measuring And Improving Human Capital Performance

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Executive ForumMeasuring And Improving Human
Capital Performance

• June 2, 2005

Mitch Wienick Kelleher Associates,
Inc. 610-293-1115 www.kelleherassociatesinc.com
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• Executive Forum -- Measuring and Improving Human
  Capital Performance
• Some Provocative Human Capital Statistics
• Half of all Americans today say they are
  satisfied with their jobs, down from nearly 60
  in 1995. (Source The Conference Board, 2005)
• 40 of workers feel disconnected from their
  employers. (Source TNS, 2005)
• Two out of three workers do not identify with or
  feel motivated to drive their employers business
  goals and objectives (Source TNS, 2005)
• Less than one-third of all supervisors and
  managers are perceived to be strong leaders.
  (Source TNS, 2005)
• One-fifth of this countrys large, established
  companies will be losing 40 or more of their
  top-level talent in the next five years.
  (Source Bureau of Labor Statistics)
• 39 of the workforce now has worked for six or
  more employers, up from 27 in 1999. (Source
  Bureau of Labor Statistics)
• 45 of workers want to change jobs at least every
  three to five years, up from 26 in 1999.
  (Source Bureau of Labor Statistics)
• Workers see more growth potential if they were to
  leave their company than stay with their current
  employers. (Source Bureau of Labor Statistics)
• 51 of U.S. workers are extremely likely or very
  likely to look for a new job or work situation.
  (Source Bureau of Labor Statistics)
• By 2010 we will have a shortfall of 10 million
  workers for the 169 million skilled jobs in the
  U.S. alone. (Source Bureau of Labor
  Statistics)

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• Executive Forum -- Measuring and Improving Human
  Capital Performance
• Practice Impact On Market Value
• Recruiting And Retention Excellence 7.9
• Company has low turnover of managers/professionals
  1.7
• Company has low turnover of employees in
  general 1.5
• Company emphasizes job security 1.4
• Formal recruiting exists for critical skill
  employees 0.6
• Recruiting efforts are aligned with the business
  plan 0.5
• Employees have input on hiring decisions 0.5

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• Executive Forum -- Measuring and Improving Human
  Capital Performance
• Practice Impact On Market Value
• Total Reward And Accountability
  15.7
• Retirement plans important for recruiting and
  retention 3.0
• Health benefits are important for recruiting and
  retention 2.8
• High percentage of company stock owned by
  employees 1.3
• High percentage of company stock owned by senior
  managers 1.2
• Pay is linked to the companys business
  strategy 1.1
• High percentage of employees eligible for stock
  options 1.0
• Company promotes most competent employees 0.9

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• Executive Forum -- Measuring and Improving Human
  Capital Performance
• Practice Impact On Market Value
• Collegial, Flexible Workplace 9.0
• Company shows flexibility in work
  arrangements 3.5
• Company has high employee satisfaction 1.3
• Trust in senior leadership is actively
  engendered 1.2
• Managers demonstrate companys values 1.1
• Company culture encourages teamwork and
  cooperation 0.5
• Company avoids using titles to designate status
  and authority 0.5

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• Executive Forum -- Measuring and Improving Human
  Capital Performance
• Practice Impact On Market Value
• Communications Integrity 7.1
• Employees have easy access to technologies for
  communication 4.2
• Employees at all levels give ideas and
  suggestions to management 0.7
• Company shares business plans and goals with
  employees 0.6
• High percentage workforce participates in opinion
  surveys 0.6
• Company shares financial information with
  employees 0.5
• Company takes action on employee survey
  feedback 0.5

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• Executive Forum -- Measuring and Improving Human
  Capital Performance
• Practice Impact On Market Value
• Focused HR Service Technologies 6.5
• Improving service is a key goal of implementing
  HR technologies 2.3
• Reducing cost is a key goal of implementing HR
  technologies 2.3
• Increasing transaction accuracy/integrity is
• a key goal of HR technologies 1.9
• Source Watson-Wyatt

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Executive Forum -- Measuring and Improving Human
Capital Performance

• Practice Impact On Market Value
• Recruiting and retention excellence 7.9
• - Company has low turnover of managerial
  employees 1.7
• Total reward and accountability 15.7
• - Retirement plans are important for recruiting
  and retention 3.0
• Collegial, flexible workplace 9.0
• - Company shows flexibility in work
  arrangements 3.5
• Communications integrity 7.1
• - Employees have easy access to technologies for
  
• communication 4.2
• Focused HR service technologies 6.5
• - Improving service is a key goal of
  implementing HR
• technologies 2.3