Most companies continue to put a strong emphasis on productivity and maintaining momentum in terms of profits. This environment has impacted human capital and talent management programs.
One major question today is, "What is the [financial] Return on Investment?" Our consultative approach identifies an analytic, business-based framework for measurement, showing companies how continued cognitive biases, derailing behaviors and/or micro-inequities including subtle forms of exclusionary practices can impact companies in terms of lost work time and productivity.
Companies are increasingly looking at more quantitative ways to link corporate talent and human capital efforts to ROI. Taking this approach is the first step to positioning human capital / talent management, not as another cost center, but as a strategic initiative.
Preliminary research done by the University of Houston's Bauer College of Business has laid the groundwork for us to develop a useful measurement identifying the return on investment—or more specifically, fiscal impact on earnings through the use of a Diversity, Equity, Inclusion, and Belonging Profit Equation (DEIB/PE™).
Margin enhancement is everyone's business. All lines of business and operational units must have an eye on the organizational profits margins. Finding ways to improve and increase those margins can be the difference between success and failure for a business venture.
The most significant expense for organizations today involve people or people related costs. The Equitable Workplace Institute's Organizational Inclusion Index provides the baseline of information needed to determine the impact of human capital practices. When these practices and policies are perceived as not being administer equitably there is a financial impact that can now be equated to an impact on earnings.
The DEIB/EPS™ allows organizations to determine the impact on one of the most significant metrics for publicly traded organizations; earning per share (EPS).
Most leaders and executives are concerned with controlling and managing operating expenses (OPEX) and leveraging the ability for all business units to improve profitability.
This provides a new tool in that management and oversight process not previously available.