How to judge

which talent really

matters

Ian Tomlin

Are You Throwing

Out Baby?

Human Capital Value and Retention

Reductions in head-count are sometimes unavoidable as changes to the business

environment place demands for changes to organizational designs.

When leaders consider how best to right-size their Human Capital to bring it in-tune with their

adapted business needs they need to know which talent is contributing most to the enterprise – and what the consequential loss of head-count

may be…

When the time comes will you be ‘throwing out the baby with the bath water?’

Why Organizations Right-Size Their Human Capital Profile

Re-Shaping the Foot-Print

1. Shifts in enterprise strategy

2. Policy adaptation due to changes in compliance/risk profile

3. Improvements in technology/process innovation

4. Cost reduction programs

5. Globalization factors

When change occurs organizational leaders must decide which

talent is the most valuable and therefore should be retained

Picture by Damian Gadal

How are decisions on head-count reduction

made today?

Not well. Studies suggest that few organizations have any effective

way of measuring Human Capital Value. The most prevalent methods

are based on understanding business unit contributions and personal

360 degree appraisals.

Taking action to judge the value of worker contributions needs to happen well before the time to review arrives…

A failure to plan ahead and install

measurement systems means that managers

have the unenviable task of basing head-count

reductions on the opinions of others – backed

up by little or no basis of evidence

Retention Planning

Organizations that seek to retain their most valued people…

That are essential to sustain the enterprise

That deliver the greatest results the enterprise cares about

That adapt norms of behavior our stakeholders care about

…require a Retention Policy that sets out how the contributions made by human capital assets are valued by the enterprise

Human Capital Value Management

Macro (Ecosystem)

How the enterprise creates an

environment where the product of

the individual worker is optimized

Micro (The Individual)

How the individual worker optimizes their

contribution to the outcomes of the

enterprise

Human Capital Value Management establishes a reporting and governance ecosystem that places its focus on managing the value of human capital, rather than the assets themselves. It places a higher currency on bottom-line outcomes – essential when adapting or reducing head-count in a thoughtful way.

When It Comes To The Decision…

Will You Be Ready?

Thank You.

Article Sponsors:

Workforce and Talent www.workspend.com

IT and Technology www.ustechsolutions.com

Ian Tomlin is a management consultant and

author. He's written several books and

hundreds of white papers and articles on

the subject of customer science,

organizational growth, technology and the

evolution of the workplace.

Books by Ian Tomlin:

Agilization – The regeneration of

competitiveness

Cloud Coffee House – The birth of cloud

social networking and death of the old

world corporation

SOS - Social Operation Systems