A crystal ball into the future value of your organization’s human assets
The language of business is MONEY and the alphabet is numbers. All organizations, whether profit or not-for-profit, depend on their ability to get the best possible return in money invested in their human asset. Managers of Human Resources functions have long suffered under the burden of lean staff and tight budgets because of their inability to communicate their success and Return-On-Investment (ROI) in the language of business. When managers go through the process of HRA measurement treating human resources as capital assets, they are more likely to make decisions that treat the company’s employees as long-term investments of the company. The HRA measurement process as a dual function attempts to increase recognition that human capital is paramount to the organization’s short and long-term productivity and growth.
We all know that people-not cash, buildings, or equipment-are the lifeblood of any business enterprise. Yet, astonishingly, there are no reliable ways to quantify the contribution of human capital to corporate profit. Today's employee costs often exceeding 40 percent of corporate expense that is why measuring the value of this human capital is essential.
Once thought of simply as the department where employee records are kept, today's Human Resources department has evolved into the manager of human capital. However, HR faces challenges – such as providing necessary services at competitive cost, enhancing productivity, and justifying budgets at a time when cost cutting threaten the organization’s very existence. Now more than ever, HR needs to position itself as a value-added partner that contributes to the strategic goals of its organization.
Human Resource Accounting (HRA) involves accounting for expenditures related to human resources as assets as opposed to traditional accounting which treats these costs as expenses. HRA also involves accounting for investment in people, their replacement cost and also for determining the economic value of people in an organization. It is a tool that allows one to gauge the effectiveness of each department and communicate with senior management in the quantitative business language they understand. To ensure growth and development of any organization, the efficiency of people must be augmented in the right perspective.
This workshop on HR Accounting offers a rare blend of management expertise and quantitative metrics, showing executives and HR professionals how to gauge human costs and productivity at three critical levels: Organizational (contributions to corporate goals), Functional (impact on process improvement) and Human resources management (value added by five basic HR department activities). This training, through a very practical approach, teaches Entrepreneurs, HR and Management professionals, how to be more successful in running a HR department in a modern organization.
After attending this 2-day workshop you will be able to protect your HR department and prove its value with a measurement system that works. In addition, the future direction of HR and its likely prospects, problems, and payoffs in the new millennium will be demonstrated, helping to make wiser HR decisions for development of the organization.
Workshop topics to be covered:
1. Introduction to Human Resource Accounting
2. Human Resource Accounting Methods
3. Measurement in HRA: Cost Vs. Economic Value Approach
4. Non-Monetary Value Based Approaches
5. Return on Investment on Human Capital
6. Actual exercises to Learn-by-Doing
a. HR Planning Analysis
b. Recruitment & Selection Alternative Comparison
c. Training & Development Cost vs. Benefit
d. Performance Management System designs to measure effectiveness
e. Employee Relations Gain Share
7. HRA in Managerial Reporting and Decision-Making
8. Redesigning the HR record keeping systems to get maximum benefit of HR Accounting