Manulife: Social and human capital accounting
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 co-relation 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.