In this week’s episode, Max Blumberg spoke with Andrew Woolnough (at the time, Value Proposition Director, Willis Towers Watson) about the concept of People Risk – what it means, what role HR needs to play, and why it is critically important for the finances of the business.
Risk is a huge business issue, and considering the financial commitment that a company makes to Reward, Training, Recruitment and other People-related costs, the financial implications of analysing and controlling People Risk are immense.
As an insurer, Willis have been working extensively in this area, and Andrew gives a behind-the-scenes look at what they are finding. He explains how a Risk- and data-savvy HR department can have a direct and significant impact on a company costs, which is a prime concern of the C-Suite.
Ideas covered this week:
Value Proposition Director
Willis Towers Watson
(at time of recording)
David Ulrich and Max Blumberg discuss the idea of quantifying the value that both leaders and employees bring to the business:
They discuss Dave’s concept of the Leadership Capital Index, and how companies are now quantifying the aspects of good leadership.
They discuss measuring the contribution of employees across the organisation towards business success in financial terms:
Dave Ulrich outlines three ways to value a firm, and raises the question: how able are you to measure these things? And how do you communicate these values to investors and shareholders?
Finally, they discuss the challenge of focussing HR endeavours on business challenges, and putting HR investment into the context of business performance. They cover the cultural transformation required for HRDs to step up and speak on a level with the CFO and CMO in addressing the concerns of the CEO and investors.
Read about his book, “The Leadership Capital Index: Realizing the Market Value of Leadership: http://thinkers50.com/blog/realizing-the-market-value-of-leadership/