The ROI of Human Capital: Measuring the Economic Value of Employee Performance, Second Edition

HOW TO MEASURE HUMAN CAPITAL’S IMPACT ON PROCESSES 75

Process /Talent Case

A concrete example of how human capital data can be com-

bined with operating needs and facilitated through IT is

labor scheduling at Louis Vuitton, as reported by IBM.

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There is a direct business benefit from better labor plan-

ning and scheduling. Gains come from cost reduction, reve-

nue enhancement, increased customer and employee

satisfaction and retention, and improved managerial con-

trol and responsiveness. Being able to match actual labor

usage to labor forecasts reduces unnecessary hiring, over-

time expenses, and outside temporary employment services.

HR’s ability to work out forecasts with managers using past

data, current trends, and future expectations depends on

IT’s ...