Human Capital Investments and Returns

Sandy Wibisono

0706306522

Tujuan Pembahasan

• Mengembangkan sebuah model untuk menggambarkan bagaimana dan kenapa orang – orang membuat Human Capital

Investments

•

Tujuan Pembahasan

• Memperoleh keuntungan atas investasi mereka

Human Capital : The Components

ABILITY

KNOWLEDGE

SKILL

TALENT

BEHAVIOR EFFORT TIME

HUMAN CAPITAL ?

DEFINITION

TOTAL HUMAN CAPITAL INVESTMENT (HCI) = [ABILITY + BEHAVIOUR] X EFFORT X TIME

Equation

?Performance

The Way Human Capital InvestmentWorks

COMMITMENT

ENGAGEMENT

HUMAN CAPITAL

INVESTMENT

Hubungan antara Commitment , Engagement terhadap HCI

Commitment to the Organization

• Komitmen muncul dari sebuah emosional atau ikatan hubungan intelektual individu dengan organisasi.

• Komitmen termasuk mendukung / menerima tujuan dari organisasi, keinginan yang kuat untuk menjadi anggota dan tahu sama tahu untuk menolak jejak investasi lainnya.

Commitment to the Organization

ATTITUDINAL PROGRAMMATICLOYALTY -

BASED

i.e :• Dedikasi kepada organisasi

Bekerja keras dibandingkan dengan orang yang tidak mempunyai attitudinal commitment

Membuat orang tinggal pada organisasi dikarenakan mereka tidak bisa keluar

- Take years to vest-

“Rasa sebagai kewajiban”

-Motivasi yang kuat- kehadiran yang konsisten

- dedikasi untuk tujuan organisasi

Engagement in the Job

COMMITMENT

ENGAGEMENT

HUMAN CAPITAL

INVESTMENT

Hubungan antara Commitment , Engagement terhadap HCI

PERFORMANCE

Commitment - Performance

Programmatic

Loyalty Based

Attitudinal

High

high

Low

LowAmount of Commitment

Per

form

ance

Foc

us

Return on Investment

ability

effort

behaviortime

The payback earned on human capital invested

The rewards required to elicit or maintain human capital investment

ROI

4 factors to invest discretionary human capital

• Instrinsic job Fulfillment – factor inherent in the job itself and its composite tasks. Intrinsic elements include the challenge of the work; the degree to which the job has interest, permits creativity, and requires the use of valued abilities; and the amount of personal satisfaction afforded by the job.

• Opportunity for Growth – chance to increase abilities and thereby add to the individual’s store of human capital.

• Recognition for accomplishments – Acknowledgment from peers and superiors of and individual’s contribution to the organization

• Financial Rewards – Receiving various forms of compensation and benefots, especially those based on the worker’s performance and productivity.

ROI Fall Into Four Categories

•Interest•Challenge•Variety•Freedom•Control

•Creativity•Fun•Social Relations•Values•Gratification

•Base Pay•Incentives•Bonuses•Commissions•Retirement plans•Equity•Health and welfare benefits•Vacation•Work / Life Support

•Advancement•Leadership opportunities•Additions to human capital: education, formal training, informal learning

•Appreciation•Award•Professional Recognition•Company Recognition

•Industry Recognition•Community Recognition•Prestige•Respect

INSTRINSIC FULFILLMENT

RECOGNITION

FIN

AN

CIA

L R

EW

AR

DS G

RO

WT

H O

PP

OR

TU

NIT

Y

Manager Misunderstanding What Worker Value

Feeling “in on this”

Appreciation

Interesting Work

Good Wage

Help with Problems

Tactful Discipline

Personal Loyalty

Good Working Conditions

Job SecurityPromotion /

Growth

Lowest Highest

Highest

Employee Ranking of Importance

Sup

ervi

sor

Ran

king

of

Im

port

ance

to E

mpl

oyee

s

Manager overemphasize

Manager underemphasize

“What does success mean to you?”

52 %

30 %

22 %

21 %

ROI – Investment Model

Workplace Environment and

Job Execution Factors

Commitment

Engagement

Human Capital Investment

Performance ROI Human Capital

Job Satisfaction

Another Way to Look at ROI

• Transactional ROI – involve an arm’s – length exchange between the company and the individual. Some from of agreement – stated, or unstated, but understood nonetheless – typically governs the tendering of the reward in exchange for services provided.

• Relational ROI , in contrast, depends – intuitively enough – on relationships. Compared with transactional ROI, it is less tangible , less contractual , more implicit , and more dependent on interaction among the people in an organization. Relational ROI seldom show up on financial statements.

Transactional and Relational ROITransactional

Relational

Job Organization

Informal Learning

Promotion/ Advancement

Intrinsic Job

Elements

Base Pay

Formal Training

formal Recognition

Informal Recognition

BenefitPerformance –

Based Compensation

Thank You