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Watson
Wyatt Worldwide, a leading international managing consulting firm,
announced the results of its first Asia-Pacific Human Capital Index
(HCI) Survey, which reveals that companies in Asia-Pacific with
superior human capital practices can substantially increase their
shareholder value.
The
Watson Wyatt Asia-Pacific Human Capital Index Survey follows the
success of four HCI surveys in North America and European conducted
since 1999. The survey represents a comprehensive review of the
people practices and financial performance of more than 500 publicly
traded companies in 12 Asia Pacific countries including India, Malaysia,
Philippines, South Korea, Taiwan, China, Australia, New Zealand,
Thailand, Singapore, Indonesia and Hong Kong. Of these companies,
119 are from India, and represent a broad cross section of industries.
The
study involved an analysis of responses to a questionnaire and statistical
correlation between these responses and the financial performance
of the company. Companies were benchmarked against the Human Capital
Index and a percentile score was computed, ranging from 0 to 100,
with an HCI score of 100 depicting highly effective people practices.
Interestingly,
the survey shows that over a five year period, companies with a
high HCI score (above 75) had a 107 percent increase in shareholder
value; companies in the medium bracket (25-75) had an increase of
38 percent and those with low HCI scores (below 25), had a decrease
of 3 percent to shareholder value. This change in shareholder value
was established relative to the growth of the stock market in each
country.
“The
Asia-Pacific HCI Survey clearly indicates that more than anything
else a company’s best prospect for sustainable competitive
advantage lies in the innovation, capability and teamwork of its
people,” said Shailesh Shah, managing director, Watson Wyatt
India.
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PEOPLE
