HC Global

Remembering that accountants are asking the questions:

1) sector productivity ratio probably means revenue per FTE or eqv. Well its been well documented by ourselves that this number needs to be adjusted (HCIR) - see our Cracking The Human Capital Code report for a detailed rationale. Even so, the number of respondents looking to track some kind of productivity measure is worryingly low. Have they given up because of the comparability problems of revenue per FTE?

2) HR FTE/FTE ratio - Yes we've been here before - this at best is a very, very macro number which has all of the problems of comparability unless you know the outcome/output side of the equation. Still clinging to this one? try I can get a ratio of 10,000 to one if I like - it's just that the organisation won't get much for it!

3) Training spend per employee - might tell you well training spend per employee....... but without context, training outcome, mandatory or discretionary split, whether it includes design as well as delivery, whether includes outsourced or not etc - you get the picture........

4) Recruitment cost per employee - great! again may tell you something - most likely tells you nothing - don't even think about comparability, and never mind the ability of the organisation to collate an accurate picture........

5) cost per turnover - eh?
6) benefits costs per employee - and??????

7) total cost of HR function - see (2) above. Really need corresponding output/outcome measures to have any real meaning at all. And what is total cost of HR function? Are you including some or all of the training and development budget (i.e. on what basis)? Does this include the outsourced bits? and what about previous investment? is this sunk cost or amortised? and so on.....you should see the trouble we have with collating an organisation picture and that's with a template..........

8)Total payroll - great - again definition for comparability, and in the scheme of things you should be able to save the organisation about, what...erm - 0.00000000001% of overall costs (actually that sounds too big!)

9) Time to efficiency for new managers and employees - oh please.................I'm sure organisations will get a real bang for their buck by recruiting an audit team for this one on a composite basis...........

10) Management time spent on managing people issues.....simce we're the only ones that have the methodology to even attempt this one (if we wanted) are we serious? (there are better and more meaningful ways of proxying this)

11) Total compensation.....as opposed to - are we talking per FTE and again without other measures this one can be meaningless itself...........

IN TRUTH ITS ALL COST AND PROCESS.................numbers 8 and 11 are the most measured currently. It makes the 'Dark ages' look positively 'Renaissance'...........

What a pathetic state!! So now you know...................can somebody please inform senior management that we have actually got a little more sophisticated in human capital since F. W. Taylor

Have a good day and mind that time and motion study....................!