Any initiative to help measure the value of human capital will get a massive thumb’s up from us at Management Training & Development Ltd. We were therefore delighted to learn of the Valuing Your Talent project, which has the potential to revolutionise the subject. To encourage lots of ideas £10,000 in prize money has been put up as an incentive for people managers and leaders to contribute to the Valuing Your Talent (VYT) initiative as detailed below.
VYT was launched in November 2013 and is a collaboration project between the UKCES, CIPD, CIMA, CMI, RSA and Lancaster University. It is an initiative to boost investment in people by showing how important employees’ skills are to organisations. The cliché used commonly by organisations is that “our people are our greatest asset” but in reality most don’t know how they would define that value. This lack of clarity deters investment in skills, resulting in dissatisfied employees, less successful organisations and weaker economies.
Based on extensive research the team has already created a draft “Valuing Your Talent Framework” which describes how, in principle, any organisation can reflect the value of their people, regardless of their size, resources or sector.
The Valuing your Talent Challenge comprises two phases. In the Insight phase ideas are being sought into what helps or hinders good human capital measurement. The framework acts as an example of how it could be done. In the Innovation phase fresh ideas are wanted for new and better ways to value talent. In addition the team is looking for ideas on how the framework could be applied in practice?
Ann Francke (CMI chief executive) commented: “Most bosses will tell you that people are the biggest costs in their organisation. The better ones will also tell you that people are their biggest asset too. But too few have the tools to accurately measure just how much that asset is worth and how it can be developed to become even more valuable. That’s one reason why human capital is at the top of CEOs’ priority lists globally in 2014.”
Julian Thompson (Director of Enterprise – RSA) said: “This experimental Challenge hopes to be the start of an ongoing open innovation community on the topic of better human capital valuation. Innovation is more likely when this community is diverse. That’s why we also want to invite creative ‘outsiders’ such as designers, developers, innovators and analysts from other disciplines to be part of the process. But diverse collaboration is only possible when there is a shared foundation. The VYT framework provides a common focus for innovation around human capital value, but one that we expect to be continuously enriched and improved.”