1. MEASURING HUMAN CAPITAL A TEST MODEL BY SOHAIL RIZVI

2. Measuring Human Capital Challenges in recession economy Low cost of Production / Services –Predictable & consistent processes –Minimum or no wastage –Innovative use of existing resources Technology leveraged work systems Multi-tasking High quality at competitive price Rapid Changes

3. Measuring Human Capital What is HR doing to meet these Challenges? HR roles need to be delegated at proper managerial levels Be part of Core business processes to provide better services Look out for best business practices and industrial trends to become an effective change agent

4. Measuring Human Capital Management Rule # 1 Anything does not get measured does not get improved Are you measuring effectiveness and efficiency of HR functions Are your HR decisions based on data or opinions

5. Measuring Human Capital HR METRICS! Organizational Level Employee Contribution Ratio Total Revenue / Total Employees Compensation to Revenue Ratio Total Revenue / Total Remuneration Salary to Cost ratioTotal Costs / Total salaries Training EffectivenessRevenue Increase / Total Training cost

6. Measuring Human Capital HR METRICS! Departmental Level Absence RatioTotal Absence days / Total Working Days Resignation RateTotal Voluntary Resignations / Total Employees Cost per Hire No. of new hires/ Recruitment Costs HR Cost Effectiveness Total HR costs / Total FTE

7. Measuring Human Capital HR METRICS! Human Capital  Percentage of employees leaving because they are not satisfied  Percentage of critical positions without succession plan  Training hours per employee  Percentage of employees in each job occupation  Percentage of minorities / women  Percentage performance

8. Measuring Human Capital Prove that people are your asset! How do you evaluate your physical assets? HR should evaluate people on market value of their competencies. The proposed measuring system is based on competency valuation To use this model, JD should include job competencies in addition to responsibilities and specifications

9. Measuring Human Capital Competency / Training Card NameHamayun Aslam TitleQuality Assurance Manager Emailhamayuna@bankalfalah.com Phone0321 4454771 Training Status Good Required course completion70% Banking OperationsYes QA standards for bankingYes Leading teamsYes Six Sigma Green beltNo Performance ManagementYes Budgeting & PlanningNo MS projectsYes Training of TrainersYes MinitabNo Office managementYes

10. Measuring Human Capital Understanding Competencies Core Competencies Supporting Competencies OR Technical Competencies Behavioral Competencies

11. Measuring Human Capital Proposed Model  Human Capital Measurement model for a Bank Human Capital Measurement