Your questions about HCMoneyball and HCMetrix™ answered.
Questions and Answers
What information is collected by the HCMoneyball platform?
You are asked to enter already existing data from standard payroll files in the aggregate – no personal or individual information is ever required.
HCMetrix™, the HCMoneyball human capital analytics platform relies on factual data collected from your company’s internal sources and standardized performance measures, to generate analytics that measure, compare and correlate human capital performance with the revenue, expense, composition, characteristics, and activities of your company’s workforce.
Financial data consists of top-line values regularly maintained in the Company Balance Sheet and Income Statement, such as total revenue, operating expense, and cost of goods sold. Employee data consists of aggregate information on employee characteristics, workforce population, and the related costs that make up the human capital dynamics within an organization. All employee information is collected in aggregate without reference to individuals. The purpose of HCMetrix™ is to analyze data at the organizational level, identify relationships in human capital data and provide measures of impact on company performance.
To enable the full benefits of HCMetrix™, data is organized within four key employee-related categories. These categories (Employee Population and Costs, Employee Demographics, Mobility/Recruitment/Separation and, Function-Specific Data – HR) build the human capital profile of your organization.
Why should I consider using Human Capital Analytics in my HR function management?
Different from, and in addition to your current people analytics, our first-of-its-kind approach to Human Capital analytics will provide opportunities to increase your ROI on the money you spend on people while improving your decision-making.
The benefits for value creation, profitability, and sustainability that human capital analytics can contribute to business are gaining broad recognition among business leaders. Based on a recent Conference Board Report, organizations that use data analytics to inform their human capital decision-making have a human capital return on investment (HCROI) up to 270% higher than organizations that don’t use data analytics. That means for every $1 of investment in human capital programs, they get 270% more benefit than those who don’t. For example, if your HCROI was $3.00 (meaning that for every $1 of investment in HR, you got $3 of economic value), organizations using data analytics approaches got an $8 return on the same investment. These organizations also had 25% higher profit levels – which makes sense if their investments in people are generating better outcomes.
Who within my organization should be given access to this platform?
Anyone in your company who will benefit from seeing the correlation of money spent on people and improved financial returns.
HCMetrix™ brings focus and insight into the financial impact investment in people has on overall company performance. As such, the information it generates serves as a critical input to both the Human Resources and Financial Management functions of a business. To facilitate joint management and collaboration between these functions, providing access to HCMetrix™ will help maximize its value for the organization. In addition, executive management and board members are primary stakeholders for the information HCMetrix™ generates.
What companies would benefit most from using HCMetrix™?
Typically, any company, in any industry, with 100 or more employees.
What makes HCMoneyball different from other financial analytics platforms?
No other platform combines people data and financial data in one platform and then provides the ability to benchmark against 10,000 public companies.
The HCMetrix™ platform is the only solution that captures both aggregate human capital information and financial information in one system. This is critical to be able to understand the relationships between human capital performance and corporate financial performance and to inform effective decision-making.
How does HCMoneyball get and update its benchmark data?
Benchmark data is imported from a public company database and updated monthly.
Benchmark data is updated monthly as companies release their quarterly performance. We import and present data from a well-known third-party provider for public company financial information. This benchmarking capability is included in your subscription price.
How does HCMetrix™ determine company-specific results?
Everything is determined from your company’s existing data and presented in a way that allows you to personally determine what-if scenarios
HCMetrix™ utilizes existing fact-based data sourced from your internal financial and human resources business process. Using that data our platform algorithms show you correlations between your investment in human capital programs and bottom-line financial results. Because only verifiable business data is utilized, the resulting analytics produce a true picture of the company’s human capital performance and the contributing dynamics that produce those results.
Once the data is uploaded, you can generate and test your hypothesis about the relationship between human capital and financial performance to see if there is a relationship. Some scenarios you might want to understand could include the relationship between salaries, benefits, training, recruitment, diversity, etc., and other human capital indicators like productivity, retention, attrition, or financial indicators like revenue, profitability, and more.
How does HCMoneyball show the results from the calculations?
You get to determine whether the visual is graphs, tables, reports, or all three.
The application allows the user to create visual dashboards using a combination of raw data and calculated data in an easy to use drag-and-drop user experience. In this way, you can create a graph that shows, for example, headcount and attrition rate, or EBITDA and HCROI. Combining different categories of data helps to generate insights.
Is the software user-friendly?
Totally. The common and well-known drag and drop user experience can be learned intuitively so that reports can be generated within minutes of logging on.
HCMetrix™ is designed as an end-user analytics application for use by financial and human resources management professionals. Users familiar with desktop technology, internet tools, and spreadsheet applications will have no problem navigating and applying the platform.
Why should I use your platform when my HR department already provides performance analytics?
Although the two processes, Human Capital Analytics and Performance Analytics measure totally different values, PA is a valuable source of information that you should continue to use in addition to HCMetrix™.
The delivery of reports showing if key performance indicators (KPIs) were met is very important. We have found that most HR KPIs are set against specific functional goals that are not directly tied to indicators of enterprise-level financial performance. The HCMetrix™ tool allows HR professionals to quantify and report their contribution to financial outcomes to Board Directors and the C-Suite. An increase or decrease in company contribution to healthcare is readily recognized in operating costs. However, the impact of that action on recruiting cost, time to fill open positions, attrition by age group, and corresponding increase or reduction in productivity is not so readily visible. These are measurements that require comparing people’s data and financial data over time and then showing the correlations between these actions.
How often should I plan on using HCMetrix™?
It probably depends on your responsibilities. Board Directors probably once each month. The CFO, frequently, especially when evaluating major decisions about spending on people or people programs. Other C-suite executives as necessary.
The platform has been designed to be used on-demand in the process of evaluating Human Capital and performance. We recommend that you visit the platform at least once a month to track and monitor performance against your selected indicators. You may want to use the platform more frequently to test any hypothesis you might have about the relationship between HR program impact or the relationship between HR programs and enterprise-level financial impact. This application is not intended to be used daily, as you might a talent management system.
How do I make sure that HCMetrix™ does not dehumanize my employees?
The platform does exactly the opposite. HCMetrix™ treats people as valuable assets of the company and provides the ability to measure their massive contribution to the enterprise’s overall financial performance.
The application is designed to provide insights about human capital program effectiveness for the very purpose of NOT dehumanizing employees. The more you can understand the collective employee population, the better you will be able to respond to the greatest need of your workforce. Only people can make decisions that dehumanize employees.
How does HCMetrix™ differ from other Talent Management software products?
HCMetrix™ is not a Talent Management Platform – it provides different information in support of very different decisions.
HCMetrix™, unlike most people analytics programs, views the workforce in the aggregate. Our system does not capture individual employee data, like a typical talent management product. We are focused on understanding the relationship between aggregate performance/behavior of the workforce and enterprise-level outcomes. This is critical to be able to quantify the materiality of human capital, now required for disclosure by the SEC and other governance monitoring agencies.
What are the differences in levels of HCMetrix™? How do I decide what level of HCMetrix™ would benefit my company?
Gold provides all the functionality of Silver plus additional capabilities. Platinum, in turn, adds to the functionality available in Gold. We strongly suggest you make your decision based on which groups of functions will serve your needs best and not based on cost. Each of the levels is less expensive annually than hiring individual talent, or assigning an existing employee part-time… and it is significantly faster.
HCMoneyball offers HCMetrix™ through three annual subscription plans, Silver, Gold, and Platinum. Each plan includes the capability to measure, manage and maximize your investment and return.
The Silver plan delivers the full set of analytics for correlating and measuring organizational investment in human capital in terms of ROI, cost, productivity, and efficiency of workforce contribution to overall company financial results. The Silver plan adds descriptive and diagnostic analytics that allow for identifying and correlating workforce dynamics across investment, mobility, and demographics correlated to corporate financial measures.
The Gold subscription introduces benchmarking against HCMoneyball-provided industry financial data to visualize your company’s human capital performance against others in your business sector. This subscription level also incorporates broader data for the EEO labor classifications across relevant DE&I categories such as population, salary, and advancement. This data introduces the capability to monitor and manage progress on DE&I initiatives, generate reports to meet the evolving regulatory reporting requirements, and correlate progress on DE&I initiatives to overall company performance.
The Platinum subscription (available in Q1 of 2022) includes all the capabilities of Silver and Gold while further expanding platform capabilities with Proprietary Human Capital Benchmarking, DE&I Benchmarking, Automated ISO and Regulatory Reporting, plus Human Capital Performance Forecasting.
Deciding which level is appropriate for your organization may simply be a question of where to start. The Silver subscription will focus on the internal impact of human capital investment on financial performance. For companies where DE&I awareness, requirements, and initiatives are becoming important, the Gold subscription provides capabilities to measure, report on, and link those programs to company performance. The Platinum subscription is for organizations that have elevated human capital performance as a top priority and want the efficiency of automated reporting, the advantage of forecasting their human capital management actions, and the benefits of proprietary human capital benchmarks for developing business strategy.
Why would I consider adopting HCMetrix™ as opposed to building an in-house application?
The cost of building your own will greatly exceed the cost of an annual subscription to HCMetrix™ AND HCMetrix™ will give you instant answers to all your queries.
When evaluating options for your business there is often a question of build vs. buy when it comes to software solutions. Should we develop internal proprietary software to meet our business needs or can we leverage a SaaS platform that has been developed specifically to address and support those business functions?
For every company, there are unique factors that influence this decision. HCMoneyball has taken the key factors that impact a build vs. by decision into consideration in developing HCMetrix™ — our human capital analytics platform. Factors that favor adopting a SaaS alternative generally include cost, speed/ease of implementation, ongoing development and support, zero-footprint technology, provider functional expertise, and the benefit of market-wide input to the product roadmap.
Factors that favor internal development include a high degree of customization to meet specialized business needs, integration with third-party software, and control. To address concerns around control, HCMoneyball employs the highest levels of security to ensure subscriber data is stored and managed securely, and that only authorized users with an organization can view and/or edit data within the platform. Regarding third-party integration, API technology is utilized to streamline data management processes ensuring security, efficiency, and accuracy between platforms.
Will I need a dedicated resource/employee to manage data for the platform?
No. There is no “management” of the data once it is entered. However, only one person will have access and the ability to upload, change, and modify the data, and having the same person for consistency is recommended
For security and control purposes one user is assigned as the data administrator for your organization, and only that user can upload or modify data within the platform. In that regard, unless you request an API, you should designate a specific individual for a very short time, once a month, to update the platform. However, the platform operates on existing monthly data that only requires the administrator to collect, review and upload monthly. Following the initial population of the platform with historical values to establish your human capital baseline, monthly data updates will require only minimal part-time effort. The option to implement API automation for monthly updates reduces the effort further to simple monthly data review.
Is there a risk in uploading all the financial data and HR data onto an external (in-the-cloud) platform?
HCMetrix™ operates on topline financial data from company income statements and balance sheets. For public companies all this data is already being reported through company filings, so no new financial data is at risk of being exposed.
All employee data is entered in aggregate so there is no risk of exposing any personal information. The platform never contains any personal data.
Does HCMetrix™ provide in-depth professional, custom data analytics reports?
The platform offers an opportunity to automatically publish selected reports. The user always has the opportunity to export any graph, table or other data she collects and easily place it in a slide presentation or report.
HCMetrix™ is an end-user analytics solution that enables subscribers to generate detailed analytics that measure human capital performance through the application of accepted calculations and correlations with fact-based employee-related data. Through the application of descriptive and diagnostic analytics end-users can evaluate and demonstrate the impact of workforce characteristics, activity, and investment has on overall company performance, and which workforce factors are most highly correlated to those results.
The platform is designed to enable our end users to perform the necessary analysis, develop the associated analytics output and information to produce customized professional human capital management reports.
For an organization that wants additional services in evaluating, interpreting, and applying the information HCMetrix™ provides within their human capital management process, HCMoneyball can provide referrals to our partner program consultants with expertise in the platform and the implementation of organizational human capital management programs.
Is dedicated support available if we have questions?
HCMoneyball provides on-call support to assist subscribers. Throughout the initial setup, we work closely with subscribers following a standard implementation process that walks new users through data collection and loading, platform functionality, and analytics generation and application.
In addition, there is on-screen support from pull-down menus on every screen.
Following implementation and through the life of your subscription HCMoneyball continues on-call support as defined in our Service Level Agreement (https://hcmoneyball.com/service-level-agreement/) with response times that ensure users access and use of the platform.