Problem
A. What is the Human Capital Value Add for our company? Explain what this number is and what it measures.
B. What is the Human Capital Return on Investment for our company? Explain what this number is and what it measures.
C. Calculate the Revenue per employee. Compare this number to the HCVA, and explain:
a. The difference between what the two numbers represent. Do they both measure the same thing?
b. Do you think one metric is more valuable than the other? Think about this before you answer. Make sure you understand what both measure.
D. Your CFO has provided you with their equivalent figures for a U.S. division (with similar revenue, expenses, and employee numbers). How does your company compare? What recommendations can you make to your CEO based on the comparisons of HCVA and HCROI between the two companies? Will the issue of reduced revenues be solved through employee layoffs? Remember: The U.S. numbers are only for comparison purposes, don't try to solve their issues.