WORKFORCE SEGMENTATION AND REPORTING PACK

Practical guide and template pack for maximizing the value of your organization's human capital

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TABLE OF CONTENTS

How to Segment Your Workforce, Measure and Report on Human Capital

  1. 1. Introduction 1
  2. 2. About Human Capital 3
    1. 2.1 Introduction 3
    2. 2.2 What Is Human Capital? 3
    3. 2.3 Why Human Capital Is Important to Business Performance 4
    4. 2.4 Human Capital and the Talent and Skills Shortage 5
  3. 3. Human Capital Strategy, Role Differentiation and Workforce Segmentation 7
    1. 3.1 Introduction 7
    2. 3.2 The Importance of Role Differentiation 7
    3. 3.3 Are You Differentiating Your Workforce Roles Sufficiently? 8
    4. 3.4 Workforce Segmentation 9
    5. 3.5 The Limitations of Traditional Methods of Workforce Segmentation 9
  4. 4. The Skills' Based Workforce Segmentation Model 11
    1. 4.1 Introduction 11
    2. 4.2 The Skills' Based Workforce Segmentation Model 11
    3. 4.3 Valuable Skills 12
    4. 4.4 Unique Skills 13
    5. 4.5 Examples of Jobs in the Four Role Categories 14
    6. 4.6 Roles Come People: Identifying Critical Roles 16
    7. 4.7 Required Action 17
  5. 5. The Skills' Based Workforce Segmentation Model and Managing Human Capital 18
    1. 5.1 Introduction 18
    2. 5.2 The Significance of the Skills' Based Workforce Segmentation Model 18
    3. 5.3 Developing and Engaging Human Capital 19
    4. 5.4 The Acquisition of Human Capital (Recruitment) 21
  6. 6. Employment Strategies: "Buy" Versus "Make" and Outsourcing 23
    1. 6.1 Introduction 23
    2. 6.2 Internalizing Versus Externalizing Employment 23
    3. 6.3 The Pros and Cons of Outsourcing (Borrowing Human Capital) 24
    4. 6.4 Investments in People and the Skills' Based Workforce Segmentation Model 25
    5. 6.5 Outsourcing Based on Skills Value and Uniqueness: Seven Considerations 25
    6. 6.6 Check List for Outsourcing Roles: The Eight Criteria 28
    7. 6.7 Required Action 30
  7. 7. Workforce Intelligence - The People (Human Capital) Data Cube 31
    1. 7.1 Introduction 31
    2. 7.2 Measuring Human Capital 31
    3. 7.3 Human Capital Reporting in Need of a Revamp 31
    4. 7.4 What Gets Measured Gets Managed! 32
    5. 7.5 Key Human Capital Measures 33
    6. 7.6 The People (Human Capital) Data Cube 34
    7. 7.7 Lag and Lead Indicators 35
    8. 7.8 Measuring Human Capital 36
    9. 7.9 Analyzing and Reporting of Human Capital 37
    10. 7.10 Other Workforce Segmentation Considerations 39
    11. 7.11 Reporting on the Acquisition of Human Capital 40
    12. 7.12 Required Action 41
  8. References 42
  9. Appendices 43
    1. A: About the Human Capital Strategic Plan Package 43
    2. B: About the Skills Segmentation Questionnaire (SSQ) and Plotting of Roles 46
    3. C: Psychometric Properties of a Measurement Instrument 48
    4. D: Measuring Competencies 50
    5. E: Measuring Levels of Employee Engagement and Retention Risk 52
    6. F: About the WRDI Institute 58
    7. G: About the WRDI® Engagement and Retention Diagnostic Tool 59

Outsourcing Guidelines

  1. 1. Introduction 1
    1. 1.1 Outsourcing Labor: Background 1
    2. 1.2 Where Outsourcing Labor Fits in Human Capital Considerations 2
    3. 1.3 Pros and Cons of Outsourcing Labor 2
    4. 1.4 Outsourcing Labor: A Strategic Decision 3
    5. 1.5 Implications of Outsourcing Labor for Managers 3
    6. 1.6 Outsourcing Activities or Services: Background 4
    7. 1.7 Motivations for Outsourcing Activities or Services 4
    8. 1.8 Risks of Outsourcing Activities or Services 6
  2. 2. Definition of Terms 7
  3. 3. Application and Enforcement 9
  4. 4. The Outsourcing of Roles: The Process 10
    1. 4.1 Outsourcing Based on Skills Value and Uniqueness 10
    2. 4.2 Seven Other Outsourcing Considerations 10
    3. 4.3 Check List for Outsourcing Roles: The Eight Criteria 11
    4. 4.4 Economic and Strategic Considerations 11
    5. 4.5 The Final Decision 11
    6. 4.6 Outsourcing Agreements 12
    7. 4.7 Engaging Contractors/Consultants 12
    8. 4.8 During Outsourcing 12
    9. 4.9 After Outsourcing 13
  5. 5. Outsourcing of Activities or Services: The Process 14
    1. 5.1 A Five Phase Model of Outsourcing 14
    2. 5.2 Understanding Service Expectations 14
    3. 5.3 Understanding the Economics of Outsourcing 15
    4. 5.4 Risks of Outsourcing 15
    5. 5.5 Final Outsourcing Decision 16
    6. 5.6 Legal and Contractual Issues 17
    7. 5.7 Service Level Agreement (SLA) or Statement of Work (SOW) 17
    8. 5.8 Documentation 18
    9. 5.9 Managing the Arrangement 19
  6. 6. Responsibilities of Stakeholders 21
    1. 6.1 Managers and Executives 21
    2. 6.2 Human Resources 21
  7. References 22
  8. Appendices 23
    1. A: Check List for Considering Outsourcing of Roles 23
    2. B: Check List For Outsourcing Of Activities: The Five Phase Model 25
    3. C: About the Skills Segmentation Questionnaire (SSQ) and Plotting Tool 28
    4. D: About the WRDI Institute 30

Human Capital Data: Reporting Templates

  1. 1. Workforce Segmentation: Classification of Roles 1
  2. 2. Workforce Numbers and Demographics 2
  3. 3. Experience and Service (Full Time Employees Only) 3
  4. 4. Absenteeism for Previous 12 Months 4
  5. 5. Salaries and Contingent Workforce Costs 5
  6. 6. Performance Ratings 6
  7. 7. Training and Development Costs 7
  8. 8. Turnover Analysis for Previous 12 Months 8
  9. 9. Affective Commitment, Job Satisfaction, Discretionary Effort and Intention to Stay 9
  10. 10. Competency Ratings 10
  11. 11. Succession Planning 12
  12. 12. Recruitment Statistics 13
  13. 13. Check List for Outsourcing Roles 14

Return to Workforce Segmentation and Reporting Pack

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