Manulife: Social and Human Capital accounting worked example
Manulife has invested in a technology training program for employees—a critical step to achieving their goal of becoming a digital, customer-centric insurance and wealth management company.
However, with no straightforward way to measure the cost or value of intangible assets like human capital, Manulife's plan to demonstrate the benefit of investment to the individual and the relationship to Manulife's human capital over time, could prove to be challenging.
To address this measurement gap, Manulife's finance team took on the task of developing an income-based framework to estimate the value of its human capital.
The framework they developed is based on the A4S Essential Guide to Social and Human Capital Accounting and is detailed in this worked example.
If your organization is interested in embarking or implementing a similar valuation strategy, read this worked example for information on their business case, methodology, implementation, results and best practices.
Phil Witherington, CFO of Manulife Financial Corporation shares his insights into developing a methodology to measure the benefits to employees’ human capital through training programmes to support their digital transformation. The project was implemented using the A4S Essential Guide to Social and Human Capital Accounting. The video also includes Phil’s top tips for other finance professionals.
Phil is a member of the A4S CFO Leadership Network.