CTHRA Completes Inaugural Human Capital Metrics Survey

Ground-breaking Research Indicates Cable Industry Receives High Return for Investments in Employees

Naperville, Ill., September 19, 2006 — The Cable and Telecommunications Human Resources Association (CTHRA) announced the completion of its inaugural CTHRA Human Capital Metrics Survey, a research initiative implemented to establish industry-specific benchmarks which did not previously exist.

CTHRA’s survey examined 25 metrics in six key categories: organization and operations; human resources staff and structure; compensation and benefits; retention and separations; staffing and hiring; and diversity. The research was conducted by Saratoga, a PricewaterhouseCoopers Human Resources offering that maintains the world’s largest database of human capital metrics and benchmarks. Fifteen multiple systems operators (MSOs) and programmers participated in the survey. Saratoga compared the metrics submitted for CTHRA’s survey to Saratoga’s general industry benchmarks based on data collected from nearly 300 organizations across various sectors.

Participating companies will be able to utilize the findings to improve the management of human resources expenditures, establish consistent reporting of human capital metrics and enhance strategic planning.

Key Findings
In general, the results of CTHRA’s inaugural research are promising indicators that the cable industry effectively manages human capital investments relative to Saratoga’s general industry database. The compiled results reflect that the companies participating in the survey value their employees and enjoy healthy return on investments in their people.

While comprehensive results and analysis on the 25 metrics were released exclusively to participating companies, CTHRA released a few key highlights to the public. Please note that these results are aggregated average numbers for all participating companies.

Human Capital Return on Investment (ROI) is the pre-tax profit for each dollar invested in employee compensation and benefits. CTHRA’s results reflected an average of $3.24 ROI compared to Saratoga’s general industry median of $1.24.

Labor Cost Revenue Percentage measures employee compensation and benefits as a percentage of revenue. CTHRA’s survey determined an average labor cost revenue percentage of 14.61 percent, nearly half as much as Saratoga’s general industry average of 29.3 percent.

Voluntary Separation Rate is the percentage of employees who voluntarily leave the company on an annual basis. CTHRA’s survey established the cable industry’s respondents 12.61 percent voluntary turnover rate is higher than Saratoga’s general industry rate of 10.5 percent, representing an area of opportunity.

“By establishing ground-breaking, industry-specific benchmarks for human capital metrics, CTHRA has enriched the database of knowledge and relevant resources for executives and human resources professionals throughout the industry. CTHRA looks forward to building upon the inaugural findings by collecting relevant data on an annual basis,” said Lisa Chang, executive vice president of human resources for The Weather Channel Companies, CTHRA board member and chair of the CTHRA Metrics Survey Committee.

Presentation of Results in Philadelphia
CTHRA’s Achieving Excellence Symposium in Philadelphia on October 18 will feature a special session focused on the trends and benchmarks identified by CTHRA’s 2006 Compensation Surveys conducted by The Croner Company and the 2006 Human Capital Metrics Survey. Seating is limited and registration is available online at www.cthra.com.

2007 Survey Participation
CTHRA’s 2007 Human Capital Metrics Survey which will be enhanced with additional analysis of the data within two categories: programmers and operators. Companies interested in participating in CTHRA’s 2007 Human Capital Metrics Survey can find additional information on CTHRA’s Web site at www.cthra.com. The deadline to register to participate is October 31, 2006.

About CTHRA
The Cable and Telecommunications Human Resources Association (CTHRA) is a nonprofit association committed to helping industry professionals leverage effective human resources strategies to improve organizational and industry-wide success. CTHRA provides its growing membership with original human resources information and resources, networking opportunities and educational programs. CTHRA’s groundbreaking initiatives include the annual CTHRA Compensation Report and its Symposium Series. For more information, visit www.cthra.com.

close window