What Are Employees Worth?

It’s no secret that for the past two centuries, the economy has evolved into a talent-driven, knowledge-based, asset community. To many investors, analysts and even employers, “assets” are loosely defined into cash flow measurement systems.

From a strategic viewpoint, many companies understand the value of human capital and how it lays within the experience and efforts of their employees.

The question is: How do you measure your employees worth?

This can be done through talent measurement scorecards. Scorecards are based on a set of advanced metrics that are linked to financial results that can quantify value creation and/or destruction.

Human-capital management and workforce analytics can work cohesively together to help quantify the value of employees.

What do these measurements look like?

The value of an employee is measured by:

  1. Mobility – What the ratio of promotions to total movements are within the company. This includes transfers, lateral moves as well as demotions.
  2. Leadership/Management – What does your quality of new hires look like? Measure the number of direct reports per manager –– the lower the number, the higher the costs.
  3. Training – What is the retention rate of high performing employees before and after training?
  4. Performance/Engagement – Rate the level of engagement by each employee. Decide what the engagement estimate is worth and how it impacts the employee’s performance.
  5. Turnover/Retention Calculate your turnover against your employee retention rate.

According to Deloitte Consulting, who surveyed a total of 2,572 human resources and non-HR leaders, 38% cited leadership as an urgent priority and 26% revealed retention and engagement was next on their priority list.

With these types of figures, it’s no wonder why well-known companies are seeking to achieve the “best places to work” votes. Evaluate your workforce analytics to help quantify employees worth with measurement scorecards based on your company’s goals and mission statement.

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