With an emphasis on practical strategies to improve productivity and performance, and limit potential liabilities, Bulletin to Management™ concisely analyzes new developments in employment and...
By Cathleen O'Connor Schoultz
An effective human resources practitioner needs to be able to help determine which measurements to use and how they matter, and to communicate that in a competitive business environment, Ronald Adler, president-CEO of HR consulting firm Laurdan Associates Inc., said Feb. 15 during a Bloomberg BNA webinar.
It is not just about numbers, but about what to measure, as well as HR analytics—how the results can help management make decisions, Adler told participants in the webinar titled “HR Metrics: Communicating the Value of Human Resources.”
Adler offered some examples of what HR should consider: Should a cash-strapped company spend money on sexual harassment training, and if so, for which employees? What are the risks and costs with either path? Is a company in danger of losing key employees to the competition? How does an employer stand in terms of succession management and what is the depth of the leadership pipeline?
HR metrics would be better termed “business metrics,” Adler said, underscoring that HR should not operate as a “silo,” but must be strategically integrated into all aspects of the business.
HR management is increasingly expected to provide both quantitative and qualitative information about human capital's effect on competitiveness, about how it helps the organization achieve its goals, and about how to assess and manage risks related to human capital, he said.
HR should think of itself as serving and collaborating with an array of “customers,” Adler said, including employees, government auditors, risk managers, senior executives, investors, and credit rating organizations. All of them need metrics from HR but for different reasons, he said.
For example, Adler said, the government auditor needs HR to be able to show that the company is complying with the law. The company's risk manager needs to know about how the company is doing in terms of legal compliance, too, and a host of other areas, he added.
HR's effectiveness will increasingly be measured against both internal and external benchmarks, he said. In terms of external measures, he said, the Society for Human Resource Management has just issued the first ever professional national HR standard—its cost-of-hire standard, Adler said.
There are numerous other standards a company's HR practices can be measured against, he said, including the “Best Places to Work”annual competition. Companies that participate can now rate themselves to see how their “employment brand” compares with that of some of the major players.
By Cathleen O'Connor Schoultz
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)