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Workforce analytics are critical to addressing economic downturns and growth cycles, according to new white paper

Exeter, United Kingdom — April 14th 2011 – HumanConcepts, the leading provider of workforce decision support solutions, today announced the publication of a new white paper entitled “Top Five Metrics for Workforce Analytics”. Written by the Human Capital Management Institute in collaboration with HumanConcepts, the document highlights the key metrics that companies should adopt if they are to manage the size and shape of their organisation successfully during economic downturns and growth cycles.

Over the past few years, companies have done an unprecedented amount of restructuring, retrenchment and downsizing. Much of this has been very reactionary, without time to think, plan, or take into consideration the optimal workforce and structure. Most companies either lack metrics to measure the workforce or they measure everything and apply a scattergun or blanket approach to every problem.

Gill Daniels, Director EMEA West at HumanConcepts, comments, “Rapid organisational change has created enormous challenges for CEOs tasked with keeping the business afloat during tough economic times and then ramping it up quickly again when new opportunities arise. Recent research reveals that companies should adopt five human capital metrics to achieve corporate-wide agility, save costs, plan for the future and transition their workforce to its optimal state. Organisations that encourage data driven decision-making will not only outperform their competitors but also return higher value to shareholders and be better positioned to meet workforce and business demands in the future.”

Organisations should adopt the following five human capital metrics to react quickly and effectively to changes outside their control and maximise their talent pool without inadvertently cutting skills that might be critical to future success:

Total cost of workforce

Measuring the Total Cost of Workforce allows organisations to get a true picture of their workforce spend and enable them to effectively manage the size and shape of the workforce. The total cost of workforce is the sum of all workforce related costs, including compensation, benefits and other employee costs for a given period of time. The ability to act strategically to organisational change, based on scientific evidence, facilitates risk management and identifies opportunities for cost savings.

Management span of control

Management Span of Control is the best tool to address cost and structure of management staff and is calculated by dividing the total staff (including management) by the total management population. This gives an effective ratio which, tracked over time, can give companies a definitive insight into workforce trends and mix, for example if the workforce is top heavy or if management is stretched too thin.

High-performer turnover rate

Unlike conventional wisdom which assumes that all turnover is detrimental to the business, HumanConcepts believes that high turnover might actually be good for the business during times of restructure or reorganisation, for example. The real key, in good times and bad, is how many high-performing employees are leaving the company. Turnover alone only indicates how many employees have been lost whereas the high-performer turnover rate indicates the value of that loss. For example, the high performer that has just left might have done the equivalent of two or three equal-ranking jobs which increases costs over time.

Career path ratio

Career Path Ratio shows the rate of upward movement versus lateral movement in an organisation. Giving staff the ability to transfer between one department to another not only enhances employee morale by giving workers new jobs that stretch and challenge them, but it is a low cost way to enhance and build a multi-faceted, experienced workforce over time.

Talent Management Index

The Talent Management Index is a combination of metrics that work together holistically across the entire employee lifecycle. It allows organisations to evaluate and analyse talent management practices for recruiting, mobility, performance management, training and development, and turnover and retention. Use of the Talent Management Index metric also shifts the paradigm from managers simply being evaluated on business results to being held accountable for human capital through objectives around talent retention, productivity, employee development and efficiency that ultimately have a tangible impact on business outcomes.

Gill Daniels concludes, “The potential of these top five metrics is significant, and the greatest value can be achieved when they are linked to financial objectives. Targeting critical workforce metrics that link workforce strategy to business results will also give HR a seat at the table, giving them the credibility to add real value to the business. With a defined human capital strategy, and advanced metrics to measure success, organisations are able to build a lean and highly productive workforce, and be prepared to quickly outperform competitors when opportunities arise.”

For a full copy of HumanConcepts’ new white paper, please contact: Andreina West, PR Artistry, on 01491 639500 or via email:



About HumanConcepts

HumanConcepts enables enterprises to better manage organisational change of all types, including growth, rightsizing and reorganisation. Using solutions from HumanConcepts, customers can achieve organisation agility, more easily understand how they are organised, plan for the future, and transition the workforce to its optimal state. Used by many of the world’s largest organisations, HumanConcepts solutions provide immediate return on investment by enabling companies to reorganise faster, manage financial targets, stay in compliance, and reduce both cost and risk. The company’s products are certified by leading ERP and talent vendors such as Oracle, SAP, PeopleSoft and Lawson. HumanConcepts is based in Sausalito, California, with offices in the United Kingdom, Germany and Singapore.

For more information, visit

Editors Contacts:

Gillian Daniels
Tel: +44 (0) 1392 829150

Andreina West
PR Artistry Limited
Tel: +44 (0) 1491 639500

This press release was distributed by ResponseSource Press Release Wire on behalf of PR Artistry Limited in the following categories: Business & Finance, Computing & Telecoms, for more information visit