So you work in energy, what do you think you’re worth?
Well if you work for SSE the answer is a staggering £173 grand!
The Big 6 supplier has just finished what it claims is a UK first, a “human capital” report which measures the economic value of the people it employs.
It asked professional services firm PwC to work out how much employees were worth to the company, in terms of output, skills and financial contribution. The figure they came up with was a staggering total of £3.4bn as at 1 April 2014.
At the time SSE employed 19,631 people, which works out to be an average human capital per head of £173,000.
John Stewart, SSE Director of Human Resources said: “Human capital should not be thought of as an asset a company owns, rather it’s the people SSE ‘borrows’ from society which allows our business to operate and to grow.
“This report shows in black and white how both a company and society benefits from proper investment in its workforce through increased earnings for individuals and resulting increased tax payments. SSE is breaking new ground with this report which helps us properly understand the economic return on investment and shape our future HR plans and our investment in training.”
The human capital value was calculated using the expected lifetime earnings of each SSE employee, depending on skills and qualifications and then adjusted for things like length of service and company risk.
One interesting result from the study was the value of apprentices. It found that for every £1 SSE invests in apprentices there is an economic return on that investment of £4.29 and for technical trainees it is £7.65.
According to the report SSE’s human capital value in the UK breaks down to: England £1.82bn (10,685 employees); Scotland £1.12bn (6,241 employees); Wales £270m (1,798 employees).