A new framework has been released which helps firms quantify the value of their employees.
An ongoing initiative within the HR industry aims to support businesses by establishing the effectiveness and importance of their people. The new framework aspires to give businesses an easily understood set of metrics that can demonstrate and provide metrics on the value of their employees.
“Businesses need to show return on their people. People want to work for organisations who fundamentally understand what they do and can show them where they add value.” – Peter Cheese, CIPD CEO.
Valuing Your Talent
The new framework, called Valuing Your Talent, was developed by HR industry groups: Chartered Institute of Personnel and Development (CIPD), UK Commission for Employment and Skills (UKCES), Chartered Institute of Management Accountants (CIMA).
The main aim of the framework is to provide demonstrable, human centric metrics, enabling businesses to better asses the effectiveness of their workforce. This includes a range of HR factors, from pay and skills to productivity and performance.
The new Valuing Your Talent framework can be found here.
The CIPD said, “at its heart, Valuing your Talent hopes to devise a ‘return on people employed’ metric comprising employee engagement survey scores, recruitment costs, training and development costs, and staff compensation and benefits. This could align with an integrated reporting framework and, with the support of the investor community, eventually help make the 80 per cent of ‘intangible’ assets on balance sheets, which are mostly employees, as easily understood as the remaining 20%.”
Furthermore, there are hopes that the framework will benefit and reward the companies that regularly invest in their people, proving their worth as well as employees.
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