Human Capital Metrics, Financial & HR People Roles

In business parlance there is a popular saying that "The most valuable assets are the people." Here in the Philippines, thousand of college graduates enrich our work force each year, serving as opportunity to all businesses who had plan to expand their operations, especially for those who are outsourcing, in the like of BPO firms. A large work force is, undeniably, the largest expense item of a company which, if well-selected and maximized, can surely drive ones business to success. So the path to profitability of all large firms is achieved by ensuring the company meets clients’ needs or requirements and expectations. In this way, a large work force somehow embodied the concept of human capital, since it is the company’s most dynamic asset. So businesses should focus on a “continuous process improvement", to make all processes visible, repeatable and measurable in every parts of their business operation. Thus, the continuous search for better metrics to measure the productivity of one’s work force, especially in the midst of today increasing cost controls due to more demanding business conditions has never ceased. Convincingly quality and process improvements in the likes of Six Sigma and Balanced Scorecards have been very effective in different parts of the organization especially to human resource (HR) departments.
Human Capital Metrics practice is also been associated with financial issue, because of its exigency to be demonstrated for overall efficient management. With this reason people from finance do some metrics which is base in quantifiable forms in the like of simple application of P/E (price to earnings) ratio, wherein each employees cost Php250,000 a year must have a P/E Ratio of 4, each individual employee should generate at least Php 1,000,000 a year. But this practice can only be applied to the sales people which sales are indeed quantifiable.
However Human Capital Metrics could be much better design if the design has been delegated to HR people. With the help from financial people HR people can easily integrate the data from finance. Because HR people can demonstrate properly the value of human capital and illustrate it well for proper presentation in a way that can be easily understand by the higher execs’ for better management decision.

रिसोर्स फॉर Personnel

Metrics delivers the results you need when you need them. No matter what service you need. But using metrics for personnel would make your mind toggle, mingle, frizzle as it involves different behavior. In a specific service human resources metrics can be use, examine the table below.



HR practitioner often seeks measures to death, and try to prove its value to provide measurable results. Having metrics is an ideal opportunity to align HR and organisational development to strategic business decisions. But to chose the right measures and making it as a challenge to lever change, add business value and gain strategic advantage.