The future lies in HR focusing on strategic people
management activities rather than administrative
deliverables and most organizations have started
to use some measures of human capital -
headcount, turnover, and productivity - or make
some assessment of the value produced.
However, there are certain principles you need to
consider to maximize the benefit you receive
from using Human Capital Management (HCM).
An effective tool for HR value proposition
1. Quantify the deliverables.
The power of measurement is not the metrics or data you collect.
Rather, the benefit comes from your ability to use the information to
diagnose your organizational situation and make better decisions to
move the business towards its strategic goals. Organizations should
review current metrics available through technology in the light of their
use for decision-making.
2. Guide people decisions.
HCM is not about proving the value people add to the business; good
leaders already have this fundamental philosophy. It is about guiding
investment decisions and understanding the benefits and trade-offs in
people decisions.
3. HCM is an integrated HR Tool
HCM ranges from basic metrics to comparative information, from
scorecards to predictive models. To succeed with HCM, organizations
need to select the HCM approach that aligns with their context and
needs. This need could be developing or identifying key metrics, setting
performance levels or measuring the ROI of HR practices.
The future lies in HR focusing on strategic people
management activities rather than administrative
de ...