the biggest challenges facing an organization is managing and reporting on human capital. Discuss how internal and external reporting is carried out to help organizations create and maximize value?

Answer 1

Human capital is one of a company's biggest expenses. How and what is reported may differ depending on the type of business. Let's use the example of a consulting company. People are the major cost of providing this service. Tracking the consultant hours per project is, of course, key to billing and time management.

I would have a robust time management platform that the staff is well trained on and is incentivized to use consistently. This system will track hours per consultant per pay period per project. This data can then be further analyzed for insights. Analysts can view the data from a project perspective- which projects consume the highest amount of human hours, billing hours, and historical vs. predictive hours of the project. This data can then be used as input to determine the profitability of a project.

Projects can be rolled up to determine the profitability and other KPIs at the customer level.

Data can be analysed by consultants or teams of consultants or by role. For example, IT consultants work more hours than project managers, or we have high usage on tax accounts and need to recruit more.

Bench hours, utilization percentages, and average labor costs can all be used to provide a "picture" of the company's performance for internal and external audiences.