42TappingtheHiddenValueofPeoplewww.mercermc.com/mmjThislargefinancialservicesinstitutionknewthatitsworkforcemadeallthedifferencetoitscustomer-focusedbusinessstrategy.Butuntilthefirmdugdeepintoitsemployeedata,itcouldn’tbesurethatitshumancapitalpracticeswerereallyadvancingthatstrategy.Ifyou’vehearditonce,you’vehearditathousandtimes:thatoldlineaboutthecompany’sbestassetswalkingoutthedooreverynight.Theheadlinestelladifferentstory.Thefre-quencyanddepthoflayoffstodaysuggestthatmanymanagersstillviewhumancapitalprimarilyasavariablecostratherthanavalue-producingasset.Managersmanagewhattheycanmeasure––andtheyfindithardtomeasurepeople.Whiletheycancalculatepayrollexpenses,theytypicallydon’thavethetoolstodeterminecausalrelationships:whyvaluedemployeesreallyleave,whathappenswhennewst