Episode 6: Human Capital Frameworks
Measuring the impact and contribution of people to business performance
Weekly discussions with leading practitioners, thought leaders, academics and tech pioneers.
This week, Max Blumberg chats with Krysta Gough and Anthony Hesketh about how companies are using some emerging methodology to directly correlate individual performance with company performance, and show the real financial contribution of specific employees. They will look ahead to when companies will need to report these figures in the same way they do with profit and loss now.
The People Analytics Podcast provides weekly episodes of lively chat with David Green or Max Blumberg and a variety of HR and Analytics experts and leading practitioners, on all kinds of current and fascinating topics around data-driven HR, workforce planning and new technology.
Human Capital Frameworks
What if publicly-listed companies had to report their HR metrics – like capabilities, training costs and engagement levels – to their shareholders in the same way that they reported profit-to-earnings and material investment? If the correlation and causal link with business performance can be proven, shouldn’t shareholders be demanding it?
It might sound unrealistic to some, but that view is not shared by the UK government, which has been working with the CIPD, CIMA and several other organisations on a project that aims to achieve precisely that.
The ‘Valuing your Talent’ initiative was the brainchild of Dr. Anthony Hesketh, professor at Lancaster University, and Peter Cheese, head of the CIPD. Dr. Hesketh went on to write the seminal paper that gave birth to the movement, which is slowly gaining momentum among businesses and professional associations.
Max Blumberg talks with Anthony Hesketh about this project, and also with Krysta Gough, who has been working with the CIPD, along with several others (Max included), to help design and implement this coming shake-up in how business views and measures its human capital.
Key questions they will answer:
- Why is a human capital framework important, and who benefits?
- How did ‘Valuing Your Talent’ arise as a concept?
- What has been the response from industry so far?
- What kind of challenges/obstacles/resistance are being faced?
- Will we achieve standardisation when it comes to people metrics?
- Why should companies get involved with VyT? And how can they get involved?