Friday, March 17, 2006

I'm Worth A Lot of "Human Capital"? That Makes Me Feel...

"Human Capital" - "Maximising Value of your Human Capital" - "Human Supply Chain Management" - "Calculating Human Capital ROI" -"Talent Management Technologies"

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PDX, YEAR 2010 - "HUMAN CAPITAL RHYTHM VALUATION"

"Hmmm..good thought, Sarah - Predicting "Human Capital De-Valuation Cycles", based on scientific evidence that Human Capital enters seasonal and Infradian cycles. Predicting "n" number of days before de-valuation periods begin, we can now prove that fluctuating salaries are justified by evidence of de-valuation for 'n'-months. I figure cost reduction of $500 mil a year, 2% net profit increase. Bill!!!, jot this down!!!

IT'S NOTHING PERSONAL

Do you wonder if that makes sense to negotiate your salary based on fluxuating peak performance periods? After all, it would be stricly business; nothing personal - it might even balance out by your negotiating a huge salary during those predicted peaks. If you are a skilled negotiator, bring your own hard evendence to the negotiating table that minimizes perceived affects of your low cycles. What might be called discrimination under today's laws, is then accepted as "just the way it is." Remember, don't take it personally when your "Human Asset Value" goes down --- it's just business, just the way it works out there.
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I exagerate for the sake of making myself think about possible outcomes. This probably won't happen, but business leaders and employees should take a pause at times and really challenge their assumptions and understanding of where certain trends might lead.

I try very hard to challenge my assumptions - to try to understand another person's "Paradigm", that person's or organization's perspective.
I'm trying very hard to understand some corporate currents to see where they might sweep me and others. I figure I should be responsible for my own critical thinking/ ask experts and research what I don't understand.,

Did quite a bit of research on this. There are many, many good articles describing the meaning and transition from "Personnel" to --> "Human Resources" to --> "Human Capital"I decided there were just too many good articles to quote. The material also gives you a severe migraine!!! -- confusing, complex and filled with scientific formulas, ROI talk and vendor marketing hype.

I aborted my research a little early. Certain patterns start jump out at me, history repeats itself. Enough research for me to formulate some early opinions and get responses from other people -- it's all input for shifting my opinion as I learn more.

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My focus is on the potential negative and the negatives I have seen so far. I know that there are some good benefits to both employee, manager, HR department and business leadership. I fear it will be getting out of hand soon if people do not start questioning the marketing hype of software vendors and big 8 consulting firms.

MY CONCLUSION (still open to altering it)

I would lean more towards the conclusion of one article that was coming more from the employee perspective, based around the HR community, it concluded that the next logical phase is:

.....from "Human Capital" to --> "Alienation of Employees"


  • Technology (BI and ERP) is advancing now where the weighted value of skilled talent can be factored in and prove additional ROI.
  • This is very impressive and kudos to recognizing that the skills of employees have tangible value.
  • This will be a total failure if everyone thoughtlessly jumps on the bandwagon.
  • "Social Value", "Personal Integrity", "Sharing", "Caring": wil be hard to ROI.
  • Employees will adopt the same ROI mind-set: "No, My brain and skill are worth more than that...You don't like high maintenance employees? I don't like high maintenace employers - bye!"
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....ahh..Yes. The words, the feelings I have. are both sad and hopeful. Sad that this trend is happening, but very hopeful --> I believe self (or imposed) adjustment will happen.

Really, what I am amazed about is that so many people in my Baby-Boomer generation do not get it....they do not see it. It is already happening: The Gen-X's & The Gen-Y's did not get much out of this whole thing ("thing" being trend of the last 10 years or so) --- they are off creating and producing new types of work cultures and companies.

They are smart, they own the future "Intellectual Knowledge" that would round out someone else's portfolio very nicely -- a gigantic ROI in the future. But, they will retain their own Human Capital. Their work place has the potential of merging Human Capital & Soul that does not draw an artificial line between business and community.

It is the daily process of living out our values, passions, enjoying work and being part of a social work place and personal community that has a bigger personal ROI. The big 8 and the big corporations will come back in line -- because the current trend will work against their bottom line.

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James Dow, 3/19/06 (updated)

Disclaimer: the above are my personal viewpoint and not the viewpoints of my employer, internet provider, my wife, kids, etc.


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