HC ROI in Bulgaria’s brewing industry, 2007-2011
Every company has its strengths and areas for improvement; and it is HC professionals’ detailed analysis and skills on which the goals to be pursued and the actions to be taken in HCM depend, so as to maximize the business benefits from it. A focus on advantages as well as a good knowledge and clear vision of how to tackle problem areas are fundamental to gaining a competitive advantage.
Texts in brackets such as ‘not shown on chart’ or ‘data about other HC indicators required’ are an example that in most cases when data are analyzed we need additional metrics like total profit, profit per employee, comparisons with companies from similar industries operating abroad, personnel costs breakdown by department or activity, sales force efficiency, level of employee engagement, etc.
The indicators I have discussed are in one way or another related to remuneration management which certainly adds to the subject of my book, but one should be aware that there are also very good metrics measuring the various activities which fall under Human Capital management: recruitment efficiency, training efficiency, absenteeism, internal communication levels, personnel costs to revenue ratio, average values per employee for the following indicators: profit, revenue, remuneration, fixed to variable pay ratio, fluctuation of manpower and fluctuation costs, talent retention, level of internal promotions, engagement, payslip costs, etc.
Let us not forget that such indicators should be used at the macroeconomic level. Claims are often heard that labor productivity in Bulgaria is much lower than that in developed economies, but no procedures are ever proposed to calculate this productivity, nor do we know anything about the specific steps taken to improve it.