The Valuing your Talent Framework

30 March 2016
The Valuing your Talent Framework diagram

The Valuing your Talent Framework enables business leaders, managers and investors to better understand an organisation’s people management strategy and the ways in which it drives business performance. It provides a basis for conversation between all parts of the business to understand how best to ‘join the dots’ and unlock the value of their people.

The framework is made up of the four levels corresponding to an organisation’s business model; its inputs, activities, outputs and outcomes. The first level represents basic people data and fundamental aspects of people strategy. As organisations move up the framework, each level offers greater insight, moving from people strategy to business strategy and increased business impact.

The input level of the framework represents the fundamental people-data building blocks which help an organisation understand their human capital. This is people data at its most basic – it is absolute and cannot be broken down any further.

Examples of measures that can be gathered at the input level include employee profiles (age, gender, ethnicity etc), headcount, skills distribution, health and safety incidents or briefings.

The activities level of the framework relates to the way in which organisations use their people – their skills and abilities – to create value. At this level activities are based around human resource and financial management processes. This data typically illustrates a process within the organisation's business model which manages human capital. Where organisations are seeking to solve a business problem or process using their people data, they must first address their people-related activities.

Measures that can be gathered at this level include cost per hire, retention, employee performance, hours of training undertaken, and succession roles identified.

The output level of the framework can be seen as the results of an organisation’s human capital management activities. At the outputs level, data is more strategic and long-term, illustrating aspects of the business’s human capital which can be modified to create further value.

Examples of outputs measures may include leadership quality assessments, stakeholder satisfaction, labour utilisation and engagement index scores.

Outcomes are the result of the activities and outputs within the business model which create value for an organisation. For instance, organisational performance could be demonstrated as the outcome of good performance management (an activity) and high employee engagement (an output).

Data at this level of the framework is of considerable value to the leadership and management of an organisation. It consists of a mix of financial and people measures but is typically built of proxy indicators. To consistently measure this complex level of data requires significant investment, but can offer significant reward.

Measures that can be gathered at the outcomes level include innovation activity, intellectual property statistics and organisational efficiency.

The aim of the Valuing your Talent Framework is to help organisations achieve improved business performance, risk assessment and value creation. Organisations that understand the role of their people in these processes are able to demonstrate superior performance in the areas that typically identify business success.

  • Effective strategic execution
  • Greater innovation and creative potential
  • Better assessment of people-related risks and opportunities
  • Greater stakeholder focus
  • Stronger corporate responsibility and governance

Download the framework here

Valuing-your-Talent-Framework.pdf (482 KB) The Valuing your Talent Framework - PDF

Valuing your Talent interactive framework

Visit the Valuing your Talent interactive framework for more information, example measures, tools and further research to help you unlock the value of your people.

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Access the Valuing your Talent Interactive Framework