Finance and Business Intelligence for Non Finance Professionals Training

Times have changed. Business acumen and financial intelligence are now considered essential HR competencies. Everyone in a company, including HR, does better when they understand how they impact company performance and how financial success is measured. Indeed, if HR were to develop its own business and financial intelligence, it would become more involved and committed, and would surely be offered a seat at the business decision table.

Day One

HR and the language of business

• The exact meaning of ‘HR as business partner’
• The modern HR competency framework
• The meaning of financial intelligence and business acumen
• The four skills of financial intelligence
• Prescriptive and predictive HR analytics
• Using HR lagging and leading indicators for effective decision making
• Lagging indicators
• Leading indicators
• Managing tomorrow, today
• Cracking the income statement and balance sheet codes
• Balance sheet basics
• Assets and liabilities
• The balance sheet should balance
• The income statement made simple
• Revenue
• Costs and expenses
• Total fixed cost
• Total variable cost
• Total cost
• Breakeven output/revenue and cost of employees

Day Two

• Cracking the income statement and balance sheet codes (Cont)
• The income statement affects the balance sheet
• Variances and percent calculations
• Employees as assets

Cash matters

• Profit is not cash
• Cash flow language
• Cash connects with everything else
• Compensation and bonus plans
• Ratio analysis
• Analyzing ratios
• Profitability ratios
• Gross profit margin percentage
• Operating profit margin percentage
• Net profit margin percentage

Return on assets

• Return on equity
• Liquidity ratios
• Current ratio
• Quick ratio

Day Three

Ratio analysis

Efficiency ratios

• Revenue per employee
• Total asset turnover
• Key HR ratios
• Total expense per employee
• Compensation as a percent of revenue
• Compensation as a percent of total expenses
• Opportunity cost of vacant positions
• Average employee productivity
• Cost per hire (at different levels of the company)
• Benefit cost as a percent of revenue/total expenses
• Employee turnover
• Absenteeism rate
• Cost of absenteeism
• HR department expense as a percent of total expense

Day Four

The rate of Return on Investment (ROI)

• Human resources vs. human capital
• All about the ROI
• Calculating the ROI
• Capital expenditures analysis
• ROI of outsourcing
• The Return on Learning (ROL)
• The Return on Human Capital (RoHC)

The financially intelligent HR department

• Putting it all together; financial acumen, transparency and performance
• Financially intelligent managers and business health
• Financial intelligence and employee involvement and engagement
• Culture of financial transparency and intelligence
• Strategies for building HR financial and business acumen