EEA YouTube Panel: Human Capital Is a Marketing Issue - CMOs Just Don't Know It Yet
This Enterprise Engagement Alliance webinar with marketing and human capital experts finds that consumers, employees, investors, and other stakeholders are driving demand for human capital reporting that is as much an issue for marketers as it is for the CEO, CFO, or CHRO.
- Advertising Agencies Probably Won’t Be a Player
- Human Capital is a Business Opportunity, Not a Compliance Issue
The concept of 360-degree brand engagement has yet to catch on in the marketing world, but times are changing.
Most of the panelists in this Enterprise Engagement Alliance YouTube show believe that human capital reporting will become common within the next three years, with only one believing it will take up to 10 to 15 years to become widespread. The webinar also includes information on the economics of human capital management and reporting and details on the steps involved from professionals who have done it.
Below are the highlights. Click here to view the show.
Allan Steinmetz, Founder of Inward Strategic Consulting, a pioneer in internal branding, and Ralf Specht, co-founder of the international ad agency Spark44 and author of the recently published “Building Companies With Soul” agree that human capital management and reporting is a critical marketing issue, because people are the essence of what every organization is selling or marketing. Nonetheless, they agree that traditional marketing management focuses only on the customer, taking little responsibility for and often having little involvement in how promises get delivered. Marketing executives and their agencies, they point out, are measured by their impact on sales, creative awards received, not on how they engage all stakeholders in the brand.
Advertising Agencies Probably Won’t Be a Player
Because the failure to deliver marketing promises undermines the effectiveness of advertising and marketing, agencies and marketing executives can benefit by addressing these issues, especially because many agencies are facing their own talent retention and acquisition challenges, the panelists agree. Nevertheless, neither Steinmetz or Specht expect agencies to step into the breach to meet the needs of 360-degree brand engagement: both foresee more specialists such as Steinmetz’ Inward Strategic Consulting to take the lead as well as the Big 5 management consulting companies.
In part 2 of the webinar, three experts in human capital management and reporting share a practical approach to creating a human capital management and reporting strategy focusing on the business opportunities, not compliance.
- Dr. Solange Charas, Founder and Principal, HCMoneyball, a human capital data management and reporting firm; adjunct professor on human capital at three universities and co-author of Humanizing Human Capital: Invest in Your People for Optimal Business Results, discusses the human capital analytics many companies are missing that can have a direct impact on financial results.
- Dr. Heiko Mauterer, Principal, 4C GROUP AG - Management Consultancy, a company that conducts ISO 30414 human capital reports and audits, addresses the ISO 30414 reporting and auditing process.
- Svetlana Goryushkina, Chief Human Resources Officer for Jetruby, an application development company with employees throughout Eastern Europe and elsewhere shares why and how her organization developed a formal, independently verified ISO 30414 human capital report.
As for the future of human capital reporting, all agree that their publication will be widespread within three years. Only Steinmetz disagrees: he believes that organizations are facing too many challenges right now to strategically focus on human capital management and reporting and that it could take 10 years or more.
Click here for a copy of the Jetruby human capital report.
Human Capital is a Business Opportunity, Not a Compliance Issue
Other points in the part 2 session on human capital management and reporting implementation.
- Only within the last few years, mostly under pressure from investors, have companies begun to look at human capital as an asset and an investment, as opposed to a cost.
- Similarly, only until recently were there human capital data analytics available to tell executives what they until now could avoid knowing: the high costs of low stakeholder engagement.
- There are now easy to track and difficult to ignore human capital measures that have a direct impact on an organization’s financial bottom line and reputation, which in turn has an impact on brand equity, starting with such basic calculations as Human Capital ROI and Human Capital Value Add, and revenues and costs per employee and customers, and their willingness to refer.
- Human capital reporting is a fundamental business and marketing issue, not compliance. It is a means of establishing a clear purpose, specific methodologies, and related metrics to demonstrate commitment to people through actual practices.
- The main challenges with implementation are conducting the gap analysis to determine which strategies and tactics are necessary to achieve key goals, along with the correct metrics and how to easily collect and manage the metrics over time.
- Independent verification by an ISO 30414 auditor enables organizations to withhold specific metrics considered to be competitive information while having verified the material trends and conclusions disclosed
- ISO verified human capital reports are audited by human capital and related business experts; not lawyers or accountants, so that the insights help drive business results.
View the show:
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Master the “S” of Environmental, Social, Governance (ESG), A.k.a. Stakeholder Capitalism
The Enterprise Engagement Alliance at TheEEA.org is the world’s first and only organization that focuses on outreach, certification and training, and advisory services to help organizations achieve their goals by fostering the proactive involvement of all stakeholders. This includes customers, employees, distribution and supply chain partners, and communities, or anyone connected to an organization’s success.
Training and Thought Leadership
- Founded in 2008, the Enterprise Engagement Alliance provides outreach, learning and certification in Enterprise Engagement, an implementation process for the “S” or Social of Stakeholder Capitalism and Human Capital Management and measurement of engagement across the organization.
- The Enterprise Engagement Alliance provides a training and certification program for business leaders, practitioners, and solution providers, as well as executive briefings and human capital gap analyses for senior leaders.
- The EEA produces an education program for CFOs for the CFO.University training program on Human Capital Management.
- Join the EEA to become a leader in the implementation of the “S” of ESG and Stakeholder Capitalism.
- The ESM information portal and The Enterprise Engagement Advisors Network solution provider marketplace cover all aspects of stakeholder engagement, and the EEA information library lists dozens of resources.
- The RRN information portal and Brand Media Coalition marketplace address the use of brands for gifting, incentives, recognition, and promotions. The BMC information library provides information and research resources.
The EEA Human Capital Management and ROI of Engagement YouTube channel features a growing library of 30- to 60-minute panel discussions with leading experts in all areas of engagement and total rewards.
- Enterprise Engagement for CEOs: The Little Blue Book for People-Centric Capitalists. A quick guide for CEOs.
- Enterprise Engagement: The Roadmap 5th Edition implementation guide. A comprehensive textbook for practitioners, academics, and students.
Enterprise Engagement Advisory Services
The Engagement Agency helps:
- Organizations of all types develop strategic Stakeholder Capitalism and Enterprise Engagement processes and human capital management and reporting strategies; conduct human capital gap analyses; design and implement strategic human capital management and reporting plans that address DEI (Diversity, Equity, and Inclusion), and assist with managed outsourcing of engagement products and services.
- Human resources, sales and marketing solution providers profit from the emerging discipline of human capital management and ROI of engagement through training and marketing services.
- Investors make sense of human capital reporting by public companies.
- Buyers and sellers of companies in the engagement space or business owners or buyers who seek to account for human capital in their mergers and acquistions.
For more information: Contact Bruce Bolger at Bolger@TheICEE.org or call 914-591-7600, ext. 230.