About

Human Capital Planning

Human Capital Management begins with Strategic HRM Models that embody five integrated human capital management systems:

  • Strategic HRM Alignment
  • Recruitment
  • Compensation Planning
  • Talent Management
  • Training & Development
  • We use this framework together with our unique consulting methodology that allows us design, implement, and help clients manage their Human Capital Plan for maximum shareholder value while minimizing turnover costs and human capital return on investment.

    The Challenges Most Businesses Face

    In all industries businesses will face specific challenges universal and impossible to avoid in managing businesses. One of the biggest issues businesses face is human capital management. Many companies struggle when it comes to human capital.

    In companies large and small the total human capital costs, or total cost of workforce (TCOW) averages nearly 70% of operating expenses. In fact, although a company's TCOW may vary, these costs generally remain the single biggest organizational expense, and extremely difficult to manage and control, given their fluid and rapidly changing nature. TCOW components include salaries, other wages, cash or equity compensation, and benefits for all employees, including temporary or contract workers.

    One goal of our Human Capital Advisory practice is to help enterprises quantify TCOW so its components can be applied to a human capital model and analyzed with the same rigor applied to a traditional financial model. This human capital analysis focuses on building and using the TCOW financial statement, giving CFOs tools to better measure, and thereby manage, the complexity of workforce driven costs, especially in an economy in which change is constant and annual budgets seem obsolete. Our Model analyzes the Total Cost of Workforce and its components to design a strategic HRM plan that effectively captures the financial aspects of the human capital plan.

    Our analysis of TCOW Components include:

  • * Calculating TCOW for the business;
  • * Comparing TCOW across industries and bench marking against high-performing companies;
  • * Obtaining specific TCOW for each position relating to market competitiveness, and
  • * Obtaining accurate assessments of full-time equivalent (FTE) headcount and workforce costs.
  • After analyzing TCOW we develop a strategic HRM model considering the Five critical HRM functions that align HRM with business objectives that determine organizational success:

    1. Strategic HRM Alignment 2. Recruitment & Selection 3. Compensation Planning 4. Leadership & Talent Management 5. Training & Development

    Strategic HRM Alignment - The Human Factor

    When designing a human capital plan, designing an HRM Model that is strategically aligned with business objectives is critical for maximizing return on investment. Employee recruitment, training & development, compensation planning, motivation, talent management, and change management are all critical in designing a highly effective and profitable human capital plan. Businesses are constantly plagued by the question of how to attract, afford and retain the best talent. Some businesses dispense better benefits and compensation but face significant attrition and employee turnover that negatively affects the profitability of the firm. Strategically alignining the firm's HRM model with business objectives is of prime importance because if it is not strategically aligned, it will not support the firm's business model and competitive advantage. Training & Development and change management is vitally important to effective HRM leadership. Without a capacity to train new employees quickly and efficiently, businesses can't grow, or maintain market competitiveness due to the inability of the business to adapt to market changes quickly.

    T&D and Change Management

    Change Management (CM) Planning is imperative in designing a business that can quickly to adapt to market demands and maintain competitive advantage. The significance of CM cannot be understated since enterprises that fail to adapt fast enough cannot remain profitable. Our change management models are embedded in the human capital plan and allows consistent ability to change based on market demands quickly. Many companies are resistant and slow to abandon practices, products, and services that no longer contribute to profits, but are nevertheless held in esteem because "they put us on the map!" Our HR Consulting Model will guide in planning, organizing, and managing resources to bring about the successful implementation of the optimal Human Capital Plan tailored specifically for your unique enterprise. We provide best practices for strategic alignment for all components of the Human Capital Plan, including compensation based strategies to recruit, motivate, reward and retain employees.

    Compensation Planning

    Compensation planning is one of the most important components of the human capital plan. Without market competitive compensation, all other components of the human capital plan will fail. We help with the complete planning cycle to establish tax sheltered and tax exempt Employee Benefits Plans for the health, welfare, and motivation of your your company's most valuable asset....Human Capital! Our Employee Benefits Plans are designed to reduce the cost of benefits funding through partially self funded underwriting techniques. Our plans include medical, prescription, vision and dental plans, income protection, supplemental income protection. The plans are tax advantaged for participants as are health, dependent care, and flexible spending accounts. We also design retirement benefit plans, as well as Fringe Benefits.

    Accident and health plans, and group-term life insurance coverage up to $50,000 may be excluded from the employee's gross income and, therefore, are not subject to federal income tax in the United States. Millennium can design plans to function as tax shelters including flexible spending accounts, 401(k and 403(b)plans. Fringe benefits are also part of the costs of retaining employees in addition to salary. These benefit rates are typically calculated using fixed percentages that vary depending on the employee’s classification and often change from year to year. Normally, employer provided benefits are tax-deductible to the employer and non-taxable to the employee. The exception to the general rule includes certain executive benefits (e.g. golden handshake and golden parachute plans).

    We design cafeteria plans that offer a menu and level of benefits for employees to choose from. In most instances, these plans are funded by both employees and employers. The portion paid by the employees are deducted from their gross pay before federal and state taxes are applied, resulting in lower income tax for employees. Some benefits would still be subject to the FICA tax, such as 401(k)[2] and 403(b) contributions; however, health premiums, some life premiums, and contributions to flexible spending accounts are exempt from FICA.

    Employee Recruitment and Selection

    Employee Recruitment and Selection is one of the most difficult components of the human capital plan. It involves federal and state laws regarding compensation, discrimination, labor practices, the Fair Labor Standards act, as well as EEOC laws & Regulations. Not only is regulatory compliance a consideration when recruiting, selecting, compensating, and managing employees, there must be an objective and verifiable effort to ensure that (1) a tight connection exists between the employee selected and the firm's organizational objectives, departmental objectives, and employee role, and (2) both firm and departmental objectives are written to produce excellence or market leading outcomes depending on the nature of the business.

    Recruitment plans have to be very specific when writing the role objectives such that they require particular skills or competencies to achieve, rather than general objectives. We help clarify organizational objectives, departmental objective, and role objectives for all positions. We ensure that for each role objective, tasks are listed and for each task, we clarify the “tools,” “competencies,” and “assessments” for each position to ensure an exact match.

    For selecting and testing potential employees, each assessment utilized for testing, depending on the nature of the task and the objectives, must list as many as required to be accurate. We provide supporting information, or give a sample set of representative items to assess whether the candidate is likely to perform well in the position, (for example if using structured interviews, etc)in the “details” section of the hiring plan. We are careful to list only those assessments that are defensible for the position. For employee selection tests, we evaluate and assign particular tests to specific employment needs, and help determine the validity and reliability as they pertain to employment selection tests. We also distinguish between the validity of certain employment selection tests based upon the evidence, and discuss, from the viewpoint of an applicant, how certain employment selection tests may be viewed negatively when applicants are not selected for jobs. We also analyze the relationship between personality and work performance.

    Our Human Capital Planning services include establishing and ensuring accountability of all plan components including Strategic HRM Alignment, Recruitment & Selection, Compensation Planning, Leadership & Talent Management, and Training & Development. We can also manage payroll, and act as employee benefits plan fiduciaries, as well as prepare Summary Plan Descriptions of employee benefit plans. Count on us to provide complete human capital plan design, implementation and management. For more information, Call 1-800-791-6962 or email us: This email address is being protected from spambots. You need JavaScript enabled to view it. regarding human capital planning, or for an analysis of your Human Capital Plan.

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    Get Started on Human Capital Planning for superior organizational effectiveness, and efficiency. We can help ensure that your enterprise embraces best Human Capital management practices for effective market leadership. Start Human Capital strategy, mission and objectives planning now call us for an discussion and analysis. We provide technical implementation for all planning initiatives in compliance with Best Practices / PMBOK.

  • Our Team

    Principal
    Director

    Management Consultant
    Advisor

    Information Technology
    CIO

    Sam Kromstain
    Director Operations

    Kathleen Hufana
    Account Executive