Key Points


A key principle for managing human capital effectively is the importance of focusing on value. It is easy to measure workforce costs. It is decidedly more difficult and unfamiliar to measure the value created by human capital attributes and practices. Difficult and unfamiliar as it may be, measuring value is now possible. Facts, not assumptions or expectations, are the key to discerning which people practices and attributes drive value. With such knowledge managers can make wise choices about where to invest and what to do and ground those choices in the unique system that is their organization. Remember the following points:

  • Cost is not the same as value. Organizations are adept at measuring the costs of their human capital, but few have a precise sense of the value it creates.

  • Sources of value include human capital attributes such as tenure, experience, and professional credentials and organizational practices such as reward systems, supervisory and control processes, and staffing practices.

  • Tools and procedures exist to get the facts about which human capital attributes and practices most drive value in an organization.

  • Facts about the value created by human capital enable an organization to manage that intangible asset with greater sophistication and effectiveness than previously was thought possible.




Play to Your Strengths(c) Managing Your Internal Labor Markets for Lasting Compe[.  .. ]ntage
Play to Your Strengths(c) Managing Your Internal Labor Markets for Lasting Compe[. .. ]ntage
ISBN: N/A
EAN: N/A
Year: 2003
Pages: 134

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