Human Capital Performance Quotient

Various studies have been conducted in recent past depicting how critical talent management has become for organizations. Last three clients that I worked at had talent management as the key strategic goal for next 5 years. Huge investments in terms of time & money is made so every manager can make informed decision to attract and retain talent. Even with all these processes it is very challenging to figure out if the company has the required talent pool, whether that pools capabilities are on accent or decent and where does it stand with respect to industry best. Here is where I thought about HCPQ (Human Capital Performance Quotient). HCPQ is way to reduce performance management complexities and see the picture beyond the obvious. Here are the necessary steps: 1. Filter out the ambiguity – To do this everything that is not performance related but attached to performance (such as pay, succession etc) is filtered out. Managers are asked to rate employees with respect to current and next position. These ratings are not influenced in terms of team (forced ranking) or current goals. Ratings are done quick and often (on a quarterly or semi yearly basis). This exercise should be separate from regular performance management cycle. 2. Score on non linear scale – Ratings defined should be on a non linear scale reflecting the benchmarked productivity difference between a high and low performer. For example if a high performer produce 3 times better results then low performer in your industry then the rating should reflect this factor. Reflecting the true factor helps in demonstrating the difference between industry best and rest. 2. Consolidate – Sum of true performance scores across organization and plotted on a line chart. Each point on the chart reflect the HCPQ for the given period. The line chart should be overlaid with the industry best and worst performers as control lines. This simple chart help in visualizing change in HCPQ over time and comparison to industry standard.

Human Capital Performance Q

Human Capital Performance Q


Saurav Khandelwal is a solution architect who is working every day to simplify business processes in HR and Technology for large multinational organization. Saurav has led cross functional teams and border less initiatives at PNC Financials, General Motors, Hannaford Brothers and Covidien PLC. View Sauravs‘ profile at

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