Human Capital Benchmarking

What is Human Capital Benchmarking?

Human Capital Benchmarking is designed to measure those human capital practices and policies that have the most significant impact on profitability. It is intended for organisations that are seeking to improve their business results by increasing their return on people. By using an intensively researched, easy to use measurement methodology, organisations will be able to apply a set of credible, predictive, and actionable human capital metrics, thereby moving beyond traditional ROI analysis, HR scorecards, and balanced scorecards.

 

What are the benefits to organisations

A customised report for each participating organisation identifies its specific strengths and weaknesses, shows separate scores for each participating branch/call centre/sales team, compares the organisation with other participants, and also includes the results of an overall analysis (across all participating institutions) to identify which factors are most closely linked to financial performance.

By producing meaningful human capital metrics and statistically linking them to measures of profitability, the results provide managers and senior executives with powerful insights into how to improve their business results. These measures provide executives with the information necessary to focus on employees as assets, not just costs, thereby putting their investments in human capital on a level playing field with other investments that organisations must make, eg, technology, physical infrastructure, marketing.

 

FSSC project

We undertook a project in human capital benchmarking in 2005 with McBassi & Company (www.mcbassi.com), a leading research and benchmarking company. We invited all of our large employers in banking and insurance to take part and held a forum to get their participation with Laurie Bassi of McBassi & Company presenting. Laurie also discussed the project with firms individually.

The project was designed to capture and analyse comparable data on the work and learning environments across multiple branches and call centre teams for all participating banks, and sales offices for all participating insurance companies, leading to compelling statistical linkages between financial results and human capital metrics.

The FSP worked collaboratively with McBassi & Company to deploy their Human Capital Capability Scorecard (HCCS) within members of the Financial Services Skills Council. The HCCS methodology was used to collect data on elements of five key human capital indicators that are proven drivers of financial results:

(1) Workforce Optimisation
(2) Knowledge Accessibility
(3) Learning Capacity
(4) Employee Engagement
(5) Leadership/Managerial Practices.

The HCCS is used to collect information from various sources in each organisation through easy-to-use online questionnaires. Most information is gathered directly from front-line employees. We also worked with each organisation to identify and capture comparable information on key financial outcomes for each participating branch/call centre/sales team. All information was shared exclusively with McBassi under a non-disclosure agreement.

Four companies (Barclays, Legal & General, Lloyds TSB and Fifth Third, an American bank) participated in the project. The final summary report identifies those human capital factors that are most closely associated with financial performance and with employee commitment. Additional focus on these factors would improve overall organisational effectivenesss and financial performance.

FSSC Human Capital Benchmarking JPG Download Human Capital Benchmarking Report

For more information about the project, please: 

E:  [email protected]
or call
T: 0845 257 3772



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