Innovation Showcase 3: Human Capital Index and Integrated Analytics
Building a Resilient Workforce
Organisations face the daunting task of navigating the interrelated complexities of human capital risk. In our client conversations we hear a reoccurring theme that their organisations do not have a clear assessment of exposure and even fewer have the ability to quantify its true impact on their business. In many instances, human capital data is disparate and the different data points are analysed in isolation, resulting in only a partial view of the workforce.
With this insight in mind we wanted to demonstrate a future where organisations can leverage data and AI effectively to enable strategic decision making to create a more sustainable workforce of the future.
Clients are moving proactively and getting to advanced stages of how they visualise a journey to leverage data and AI effectively (Foundational, Reactive, Proactive, Advance and Leading stages). Therefore, the Human Capital Index and Integrated Analytics tools have been developed to enable organisations to travel further faster on this journey.
Human Capital Index (HCI)
Human Capital Index is our top-down holistic approach to assess an organisation’s human capital, identifying and quantifying gaps and focus areas compared to a select peer group. The Human Capital Index framework provides a well-rounded view of an organisation’s human capital effectiveness across 12 dimensions and 17 metrics. The product has the functionality to analyse data across multiple parameters to generate actionable insights and their ROI along with the flexibility for the clients to choose their comparator peer group for each metric. For our existing clients, we already have this data through our compensation, benefits and retirement engagements.
Integrated Analytics
Integrated Analytics is our bottoms-up, employee-centered, data-driven approach towards human capital strategy focused on improving on three critical business outcomes: employee performance, absenteeism and retention. Through the use of advanced data analytics, we can identify key risks and opportunities across targeted segments of the employee population. Following recommended actions, HR budget can be deployed to solutions that maximise value, where return on investment informs future decision making.
Key Insights
It was invaluable to us to get your feedback and inputs on how these tools may be used in your organisations to help shape the workforce of the future. Some key takeaways observed from the session:
- Feedback was positive and HCI is seen as a good product for an entry level diagnostic for the HR team to identify levers based on the data Aon already has. Importantly we heard that the framework is in a good format to present to the Board.
- There is definitely an opportunity to fine-tune the HCI product based on the feedback received – there is scope to simplify the framework to increase the impact it can have at a board level, and there are a number of metrics that can be added based on feedback which we will now take away and continue to improve the tools value to clients.
If you would like to find out more about the tools presented at the open discussion please click the ‘Arrange Meeting’ button provided and we would be happy to discuss.
Learn more about our Human Capital Capabilities.