The New HR Analytics

Predicting the Economic Value of Your Company's Human Capital Investments

The New HR Analytics

Author:Dr. Jac Fitz-enz
Pub Date: May 2010
Print Edition: $21.95
Print ISBN: 9780814438848
Page Count: 368
Format: Paper or Softback
e-Book ISBN: 9780814416440

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Want to Build an Effective Workforce for the Future?

Start Now with Capability Planning

Why waste money on seeking the best candidates to fit into outdated job descriptions or match the staffing requirements in short-term, short-sighted business plans? Changes in technology, customers, market niches, competition, and other forces call for shifting the focus from finding capable people to developing new capabilities.

What new capabilities do you need to acquire or build to meet changing market trends? That’s the core question for transforming yesterday’s workforce planning into capability development for today and tomorrow. In his latest groundbreaking book, THE NEW HR ANALYTICS (AMACOM May 2010), acclaimed human capital management pioneer Jac Fitz-enz shows how capability planning leads to succession planning that leverages quality employee engagement and drives revenue growth. It all starts with skills segmentation. “While all people are important, all skill sets are not of equal importance,” he notes. “Treating the workforce like a monolith is absurd and costly.” Fitz-enz presents a plan for subdividing the workforce into the following capability categories:

• Mission Critical. A few capabilities are absolutely key to ongoing success. If you think about it, you know what these are. They can relate to technology, leadership, finance, sales, production, or anything else that represents a make-or-break situation. Do you currently have sufficient mission-critical capabilities in place? Do you have back-ups being developed? (According to Fit-enz’s survey of 1,200 companies, 54 percent of companies have ready backfills for fewer than 30 percent of their positions.)

• Differentiating. Given your current or desired future market possibilities, which capabilities separate your organization from the competition? These can be unique technical, financial, service, or other skills and knowledge that only your organization has or needs to acquire. These often augment the mission-critical capabilities, but are not identical.

• Operational. Certain skills are necessary to keep the operation going. These are often characterized as administrative and maintenance, but also include technical skills. At times they are taken for granted or ignored. They need to be reviewed as insurance, as their absence would reduce efficiency, impair timely response to customer needs, and increase operating costs.

• Movable. As markets, customers, and products change, some skills become less important or even obsolete. Companies sometimes forget this and allow these to remain, causing operational expenses to build. In the worse situation, this can culminate in massive layoffs. People in these positions need to be retrained, reassigned, or let go, and the processes outsourced, if needed at all.

Adapted from THE NEW HR ANALYTICS: Predicting the Economic Value of Your Company’s Human Capital Investments by Jac Fitz-enz (AMACOM May 2010).

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