Page 26 - Gi flipbook April 2018

PEOPLE

ARE OUR

GREATEST

ASSET

A new white paper from Energy & Utilities
Skills and SSE examines whether enough value
is placed on human capital to deliver the vital
infrastructure the entire sector is responsible
for. Kate Davies, Chief Operating Officer at
Energy & Utility Skills, claims companies and society benefit
economically from greater investment in the workforce

he Energy & Utilities Skills individuals acquired during their life
Partnership recently and used to produce goods, services People report also looked at the
published a white paper or ideas in market circumstances.” benefit to the UK economy of SSE’s
looking at whether Valuing human capital can create a long-term investment in the talent of
T enough value is placed on better understanding of the tomorrow. Since 2007, SSE has
human capital to deliver vital significance of employees to a business invested £60 million in apprentice
infrastructure. This is built on the and provide insights into the drivers of training. The analysis within the report
investment made by SSE in a ‘human growth. This generates opportunities found that for every £1 SSE invests in
capital report’ which measured the for an organisation to enhance the apprentices there is an economic
economic value of the skills and productivity of its workforce, not only return on that investment of £4.29
capabilities of the people it employs, for its own benefit but also for the and for technical trainees it is £7.65.
leading the way in the UK. benefit of individuals and wider society.
The Skills Partnership comprises 29 SSE commissioned professional BORROWED FROM SOCIETY
leading utility sector employers that services firm PwC to help estimate the SSE’s report demonstrates both
have come together with a mission “to economic value of the energy company and society benefit from
ensure a safe, skilled and sustainable company’s human capital. The investment in its workforce through
workforce provides the essential methodology to value human capital increased earnings for individuals and
services our customers seek and uses the expected lifetime earnings of resulting increased tax payments. PwC
meets the UK’s needs from the energy each SSE employee, depending on estimated the economic impact of
and utilities infrastructure.” skills and qualifications, and adjusts for SSE’s operations, finding that over the
such factors as the expected length of past five years it had contributed over
VALUING HUMAN CAPITAL time an employee is expected to stay £46 billion to the UK economy.
According to the Organisation for with SSE and applies a discount factor Perhaps one of the key messages
Economic Co-operation and for company specific risk. we need to communicate is that
Development (OECD), human capital The results highlight that people human capital should not be thought
is defined as “the knowledge, skills, are SSE’s largest asset, with the of as an asset a company owns; rather
competencies and other attributes company’s total human capital value it is the people borrowed from society
embodied in individuals or groups of coming in at £3.4 billion. The Valuable who allow our business to operate

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