Human Earning Power® >
Work converts business earning power potential into reality, and its cost, measured by compensation, is the largest single recurring human resource cost. The quality of work and value creation begins with “X”.
Human Earning Power® evaluates the contribution of individual jobs based on their business earning power impact. Work is analyzed by its intended business outcome(s) and the earning power performance measurements(s) it impacts. Based upon this analysis individual jobs are placed into 1 of 3 “job buckets” reflecting their work contribution quality:
- Direct earning power conversion jobs are high impact jobs where work can be clearly evaluated by one or more revenue and/or cost measurements. These jobs directly impact business results and are high intrinsic value jobs.
- Indirect earning power conversion jobs do not directly impact but influence business results. While their intrinsic value is not as high as direct conversion jobs, their contribution to revenue generation and/or cost containment is significant.
- Service support jobs have little or no impact/influence on business results and are low intrinsic value jobs.
These buckets are the “earning power” categories shown on the capitalization statement. These categories reveal job structure quality determined by the relationship between earning power contribution and cost.
An organization is a collection of individual jobs. Once the contribution of individual jobs has been identified, the contribution of a company’s organizational units to business earning power conversion can be determined from how individual jobs are integrated into the larger whole. This analysis will provide the human resources executive with an earning power based picture of:
- Work quality by organizational entity
- Organization structure quality improvement opportunities
- Work – worker accountability inconsistencies