On April 23, I attended the Economic Club of NY and listened to JPMorgan Chase CEO, #JamieDimon discuss economic issues in the U.S. economy for 2024. He was interviewed by #MarieJoseeKravis, chair emerita of the #EconomicClubofNew York. Here is a short summary of his remarks.
In his comments he was bullish on a “robust” U.S. economy and mentioned the low unemployment and positive consumer financial environment, housing prices for owners, However, he pointed out the problems with increasing U.S. debt and concerns that inflation might endure longer than expected keeping interest rates higher. He mentioned concern over government spending. He pointed out threats to commodities markets and movement of people due to the continued conflicts in the Middle East and Ukraine.
Dimon observed, the U.S. government would benefit from more “practitioners.” He said he’d like to see the next president populate the cabinet with members of the other party. He promoted putting people with practical, business experience at the table, hopefully reducing political polarization. “I want the next president, whoever it is, to put the other party (members) in their cabinet. That is what I would like to see. I would like to see practitioners go back to the government.” He said he was “very excited” about the future.
His remarks and conversation were very well received. Personal ancedotes from my table mates who know him were very favorable. He is much admired.
For a more detailed commentary on the economic future read his annual report to JPMorgan shareholders:
https://reports.jpmorganchase.com/investor-relations/2023/ar-ceo-letters.htm
Consider how you develop a competitive financial and operational advantage in your human capital. Here is a great article from McKinsey, well documented and food for thought. If you want more ideas for increasing your EBITDA in HR operations, let us know and our global, peer reviewed HR and Finance executives will brainstorm with you about your specific challenges.
The new ISO Guideline 30414 contains key organizational metrics that help executive leadership identify the costs, benefits, and outcomes from HR operations. If you are a portfolio manager or HR leader, you can show your financial executives just how important good HR management practices are to increasing the EBITDA value of your businesses. For example:
• Assume the company has: 250 employees
• Employee annual turnover: 16% (national average)
• TOTAL cost of replacing an employee is: 0.75x annual wages
• Annual wage is: $77,500 (national average, source: MarketWatch)
Let’s assume that BPHR does an audit of your HR practices and makes recommended changes leading to a modest reduction in employee turnover to 10%.
The annual savings for not replacing the 15 employees would be:
15 employees x 0.75 x. $77,500 = $872,000 added to EBITDA
The equity value would then be:
$872,000 x 7 = $6.1M, or an additional 11% in equity value.
This is just the beginning. BPHR focuses on increasing financial performance through Human Resources operations. Our team of financial and HR executives will answer your questions and help you uncover more ways to increase EBITDA.
See more of what we do at
https://lnkd.in/erQgDkBM.
Contact us at walsh@birchtreeglobal.com for a discussion of the possibilities.
Thank you, James Calver, for the insights!