When Measuring Human Capital
Keep track of data. It is important to have the necessary data available. For example, it is impossible to calculate cost ratio and efficiency without first knowing your organization’s external and internal recruiting expenses.
Measure consistently. Be careful not to overdo it; calculating quality, time, satisfaction, RCR, and efficiency more than once a month can distort the results.
Monitor activity indicators weekly. Activity indicators, such as Acceptance-to-Start Ratio, should be monitored every week. The trends that these results yield, both positive and negative, should be examined closely.
Make adjustments. Be sure to correct the negative trends, while exploiting the positive ones.
Don’t be afraid to experiment, even if it may or does produce negative results. No performance curves go straight up; Look for mistakes. Things are never as bad, or good, as they seem.
The five main components of the blueprinting process include gathering information, analyzing information, validating the analyses, envisioning what can be, and creating an action plan to achieve the blueprinting goals.
Gather Information. The blueprinting process begins as information related to the three human capital dimensions is collected.
Analyze the Information. The collected data alone will provide helpful evaluative data for existing organizations. The lack of clear or correct mission and objectives, for example, is a common cause of poor performance. Startups can use the analyses to determine the optimum human capital allocations and categories.
Validate the Analyses. It is critical that all appropriate constituencies validate the analyses. Fundamental organizational factors are particularly critical, for they are the major drivers for all human capital performance.
Envision. Envisioning enables what can be to become a reality.
Blueprint for Action. Blueprinting ends with a documented plan and the associated metrics that will deliver the optimum human capital and organizational performance.
While each dimension is clearly separate, they all influence the others. Whether applied to employees, contractors, or temps, the factors that drive the performance of every type of human capital have a similar life cycle. The activities may be different for employees and outsourced operations, but the life cycle should be the same. A metric or benchmark is much more meaningful if you have associated information on the other types of human capital and the other dimensions.