Human Capital Risk Management
Human Capital Risk Management is our signature discipline founded on the belief that a strategic competitive advantage is formed when the management of the workforce is blended with risk management methodologies and strong business analytics. Numerous discussions with CEOs have validated the need for collaboration between core operational functions such as Finance, Information Technology and Human Capital Management. Siloed thinking, adversarial relationships, and the absence of integration create wasted resources, poor fiscal management, and lost opportunity. In today’s business climate, synergy and efficiency isn’t just a “nice to have” – it means survival.
Human Capital Risk Management reinvents Human Capital Management and aligns Talent Management with the business by integrating analytical business tools and measurements into the execution and management of the workforce and the technology that supports it. Through multiple client engagements, HRL has fine-tuned the use of business analytics applied to workforce change initiatives creating a library of templates and methodologies that can be customized to support a client’s need.
Below are examples of the tools and processes used to support the assessment, development and execution of strategic HR initiatives. Some are proprietary, created for a specific client need and now available to all clients. Others are tools you are familiar with that are now customized toward workforce change initiatives and used by HRL to ensure successful project execution and improved client success.
- Business Case Study - the analysis of a current problem, potential options, and development of a recommended solution with a resulting documented report.
- Needs Assessment – the analysis of a current problem and the assessment of the need for a solution. The Needs Assessment is often part of a Business Case Study.
- Gap Analysis – the comparison of the current state of operations against the optimal state of operations to determine the breadth of the “gap”. This methodology can be customized and applied to a variety of problems and provides a very objective representation of the analysis by “quantifying” the results. By translating results into numerical measurements, comparisons are easier and can be conducted as a point in time view or as a historical view. Think of the gap analysis process as a performance evaluation for a specific system, process, or business goal.
- Benefits Administration Efficiency Assessment© (BAEA©) – this tool is a proprietary tool based on the gap analysis template. The BAEA© assesses the current state of an organization’s employee benefits administration, identifies risks and waste inherent in the current operational practices, and provides recommended best practices that can improve operations and fiscal accountability. [Read about a BAEA© Case Study]
- Organizational Leadership Effectiveness Assessment© (OLEA©) – this tool is a proprietary tool based on the gap analysis template. The OLEA© assesses the current state of an organization’s leadership and its effectiveness in supporting operations, culture, and future success. Through the OLEA©, an organization can identify areas of weakness in leadership, develop a specific plan of improvement, and measure progress toward those goals. [Read about an OLEA© Case Study]
- HR Metrics – HRL believes metrics are only useful if they adhere to the “3Rs” – relevance, reliability, and replication. HRL supports the development of HR metrics that will provide a strong foundation of support for your HR business initiative, improve credibility, and create measurement that supports decision making.