Measuring your workforce: myth-busting

Many of the common views on human capital, or intellectual capital reporting, are inaccurate. This forum aims to convey the message that it is practical, profitable and necessary for the modern employer. Below, we challenge some of the myths and misconceptions:

Isn't it impossible to measure intangible assets?

The term 'intangible' is something of a misnomer - after all, your employees exist. You pay them. They serve customers. Many human capital measures concern every-day practical matters such as staff turnover, absence, staff morale, costs of hiring staff and so on that are both tangible and necessary for management. Returns on investment for some people-related initiatives can be calculated with at least as much accuracy as any other type of investment. The alternative to not gauging such matters is to rely upon anecdote and guesswork.

'But there's no proof that this approach can improve business returns'

Actually, there is plenty of proof. Some companies such as Tesco and Royal Bank of Scotland attribute their growth in large part to putting place systematic measures for the workforce, while case studies show returns that run into millions of dollars (see ROI features on the home page).

'Isn't it for Government and reporting bodies to come up with standard measures before we report on them?'

You can wait for standards, but you could be waiting a long time. The business benefits of understanding the workforce can be realized by implementing measures much sooner.

ROI Feature 1: click here for feature

ROI Feature 2: click here for feature