One of my favorite online and hardcopy pubs is CFO magazine. If you’re serious about understanding the financial side of recruiting (and all of HR for that matter), I’d strongly suggest subscribing (it’s free). Each month carries an article about financial metrics – the easiest way to inculcate yourself into the good graces of your CFO is to understand what makes them tick and which metrics they follow. If you can “recruiterize” your CFO’s favorite financial measures, I believe you’re well on your way to making a stronger business case for what you do.
This month’s issue carried the results of a great survey on Cost Management and listed industries by the median Cost Management Index and ranks companies according to their ability to manage costs. The survey is based on U.S.-based publicly traded companies that reported at least $1 billion in revenue annually from 2000 to 2003. Companies were eliminated if they were acquired, went bankrupt, or if there was a lack of data. Additionally, change in revenue was included to highlight how firms manage costs within their revenue environments.
In all, 1,091 companies were surveyed based on data supplied by Compustat and other publicly available sources. The result is a ranking of companies in 53 industries according to their three-year Cost Management Index, which equals Cost of Goods Sold( COGS) plus SG&A costs (before depreciation and amortization) all divided by operating revenues.
When you read this, do you begin to wonder if recruiting cost management would also fall inline with the industries analyzed? I’m going to have to find out…and report back.
INDUSTRY 2000-2003 Average (%)
Airlines 96
Distributors 96
Retail ? Auto 96
Retail – Grocery And Pharmacy 96
Oil And Gas 94
Retailers ? General 94
Utilities ? Natural 94
Computer Systems And Peripherals 92
Insurance – Health And Medical 92
Retail ? Specialty 92
Automotive Parts 91
Insurance – Property And Casualty 91
Metals And Mining 91
Shipping And Transportation 91
Construction 90
Furnishing And Appliance 90
Professional Services 90
Retail – Apparel And Footwear 90
Factory Equipment And Machinery 89
Paper And Paper Products 89
Aerospace And Defense 88
Apparel And Footwear Manufacturing 88
Auto And Transportation Manufacturing 88
Chemicals 88
Diversified Manufacturing 88
Electronics And Semiconductors 88
Healthcare Services 88
Household And Food Products 88
Median Of 53 Industries 88
Building Materials 87
Electrical Equipment And Components 86
Restaurants 86
Containers And Packaging 85
Insurance ? Life 85
Beverages 84
Investment Advisors 83
Business Services 81
Medical Devices And Scientific Equipment 81
Printing And Publishing 81
Computer Software And Services 80
Hotels 79
Entertainment And Gaming 78
Media 76
Telecommunication Services 73
Utilities ? Diversified 72
Biotech 71
Consumer Services 71
Credit Institutions 71
Utilities ? Electric 71
Pharmaceutical 70
Oil And Gas ? Drilling 68
Tobacco 59
Commercial Banks 57
Real Estate 55
Share the Inferno's Fire...
Like this:
Like Loading...
Related
The Recruiting Inferno 