Navigating Human Capital Risk and Uncertainty

Most larger organizations say their workforce is an asset – even their “greatest asset.” Far fewer manage their workforce as if it were an asset. Nowhere is this more evident that in the glaring absence of disciplined management and quantification of the risks to business performance and value arising from the people side of operations.

Mercer’s new white paper provides a framework and methods for companies to quickly close this gap - to understand the nature of the risks they face, the likelihood these risks will materialize and the impact they might have, and, most importantly, to uncover effective strategies to mitigate them.

Human capital risk is most acute during times of change.  Adjusting your products, services, branding or technology to a new market is not sufficient. Your workforce needs to adapt as well and changes must happen internally as well as externally.

Assessing your workforce based on advanced analytics can help with talent acquisition, development and retention issues that may be slowing your company down. Along with new business strategies your company has already planned, you’ll also need the right people who can properly implement that strategy.

Human capital management is the newest, often most important and surely most complex form of asset management. When it comes to human capital management, the accounting lens has to be displaced by the economics lens.

Mercer Consulting

Workforce Strategy and Analytics

At Mercer, we measure both human capital risk and uncertainty. Risk relates to fluctuations in business that stem from knowable probabilities. Uncertainty relates to situations in which the outcomes and their underlying probability distributions are both unknown.

Using statistical modeling based on workforce history, organizations can focus on policy interventions that are more likely to mitigate a specific kind of human capital risk, such as unwanted turnover.

For more uncertain calculations, Mercer can access business processes that help gauge the likelihood and consequences of misaligned human capital crises. For example, discovering what makes workers delay retirement can unclog your talent pipeline and get your people in the right positions for your company.

Haig R. Nalbantian
by Haig R. Nalbantian

Senior Partner, Co-Leader of Mercer’s Workforce Sciences Institute

Navigating Human Capital Risk and Uncertainty Through Advanced Workforce Analytics is now available.

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