Heard on the [HCM] Hill: Talent Valuation
I cannot begin to tell you how many books we’ve promoted over the years. They say everyone has a book in them; and, yet, we know firsthand that there are some people who shouldn’t have taken that literally.
That’s why the new book from Linda Brenner and Tom McGuire of Designs on Talent is such a breath of fresh air. Instead of identifying problem after problem, the authors of Talent Valuation have a solution: An Intellectual Capital Index (ICI) that business and HR professionals can put into action within their own organizations without needing a Ph.D.
Stepping back for a moment, here’s what you need to know about the authors. Their pragmatic approach stems from their own professional experience. Prior to joining Designs on Talent, McGuire was a CFO and Global Talent Acquisition Director at several top global consumer products companies. How many of us in HR can boast a financial background? Brenner is the managing director and founder of the Atlanta-based consultancy that can tell you why your users aren’t adopting the technology you invested so dearly in as well as how to improve talent results. Previously, she led talent acquisition and talent management teams at Gap, Pepsi and The Home Depot. Together, they form a remarkable brain trust, deconstructing HR buzzwords, illuminating the importance of talent planning and analyzing the impact of talent on investment returns.
Here’s a key takeaway from this book: yes, you can read that salaries expense line on your annual budget until your eyes blur. That doesn’t mean it equates to the full value of your human capital. Without qualified talent – in the right roles – the wheels come off the bus pretty quickly. Yes, a senior machine operator is an expense; however, without that machine operator’s expertise, there is no production from the machine. Scientists are the key assets of a biotech company; without them, their employer would own no intellectual property in the form of patents. The true value of human capital requires far more complex analysis and this book provides a practical roadmap for a value-driven talent strategy.