Date post: | 10-Jul-2015 |
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Business |
Upload: | jon-windust |
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Is the future of work bigger companies employing less people? The Australian perspective
About the research I love thinking about the future of work. And recently there’s been a lot of discussion that the future of work means bigger companies employing less people. It’s hard to draw any other conclusion when you look at deals like the Facebook acquisition of WhatsApp, a US$19 billion dollar acquisition with just 55 employees. I’ll save you pulling out the calculator –Facebook are paying an incredible $350m or so per employee! I wanted to understand the Australian perspective on whether we’re seeing the start of a major disconnect between number of employees and firm value. To do this we’ve spent some time running the numbers on the ASX 100. And the results might surprise you! If you’ve got questions about this data, or want to learn more about how Cognology helps over 250 Australian companies get the most out of their employees, please don’t hesitate to get in touch. Kind regards, Jon Windust CEO – Cognology
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The100 largest companies in Australia (the ASX 100) employ1.4m people
So at an individual level, the market values each Australian employee at just over $1m ($1,002,617 to be exact)
At an aggregate level, these 100 companies are worth just over 1.4
trillion dollars (yes, with a T!)
3 Source: Google Finance (FactSet) – September 2014
Are you worth
$1,002,617?
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The big earners in the US work in the cloud
Here in Australia the big money is still in the ground
12.2
4.2 2.2
1.0 0.7 0.5
Property and Infrastructure
Financials, IT and Engineering
Mining, Heavy Manufacture and
Transport
Healthcare and Science Consumer Product Manufacture and
DistribuBon
Customer Service and Retail
Average market capitalisation (A$M per employee)
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Source: Google Finance (FactSet) – September 2014
Australia’s most valuable employees work at Transurban Each employee is worth nearly A$32m in market capitalisation!
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31.8 28.8 28.6 28.0
21.0 17.5
15.6 13.2
10.9 10.1 9.5
Market capitalisation (A$m per employee)
Australia’s most valuable employees work at
Transurban
7 Source: Google Finance (Factset) – September 2014
31.8 28.8 28.6 28.0
21.0 17.5
15.6 13.2
10.9 10.1 9.5
Market capitalisation (A$m per employee)
The majority of the top 10 is
infrastructure, property and oil&gas
8 Source: Google Finance (FactSet) – September 2014
31.8 28.8 28.6 28.0
21.0 17.5
15.6 13.2
10.9 10.1 9.5
Market capitalisation (A$m per employee)
SEEK is the only technology company
to make the top 10
9 Source: Google Finance (FactSet) – September 2014
What about Australia’s least valuable employees? ?
10
0.22 0.21 0.18 0.18
0.12 0.12 0.11 0.10 0.09 0.09 0.09
Market capitalisation (A$m per employee)
The bottom 10 is dominated by retail, engineering and
logistics
11 Source: Google Finance (FactSet) – September 2014
0.22 0.21 0.18 0.18
0.12 0.12 0.11 0.10 0.09 0.09 0.09
Market capitalisation (A$m per employee)
On a market capitalisation basis, Toll, Qantas, Myer and Downer are all worth
less than $100k per employee
12 Source: Google Finance (FactSet) – September 2014
THE DIFFERENCE BETWEEN THE VALUE OF A TRANSURBAN AND DOWNER EMPLOYEE IS AN
ASTONISHING 367 TIMES
367x $0.09m
$31.8m
13 Source: Google Finance (FactSet) – September 2014
Cognology is an Australian company making Talent Management software for the future of work. Over 250 businesses use Cognology to empower cutting
edge talent strategy.
We build technology to help our clients with performance, engagement, retention and learning for their entire employment lifecycle. Our research and development efforts are continually looking for ways to make it easier for our
customers to execute business strategy, develop their people and do great things together.
Learn more about Cognology at http://www.cognology.com.au/
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