Measuring Human Capital

1394 Words3 Pages

Introduction

In the past Human Resource (HR) professionals built staffing, compensation, training, and other programs and policies that focused on employees and kept companies legally compliant. The HR function tended to be positioned at the end of the business chain and often focused on carrying out activities rather than achieving results (Dunn, 2006). But in the last decade, HR professionals have worked to become business partners by aligning their work with business strategies. This is important because being strategic means having an impact on corporate goals and objectives. As a result, HR professionals have been spending more time with general managers and with their counterparts in sales, marketing, and manufacturing to ensure that HR work adds value to the organization and helps deliver business results.

One of the most effective ways for HR to position itself as a strategic business part¬ner is to do so by supporting the strategic business goals through key performance indicators. Key performance indica¬tors (KPIs) mea¬sure human capital outcomes, such as talent management, employee engagement and high performance, illustrates the firm's business, financial and strategic goals, promotes partnership with senior manage¬ment for organizational success and demonstrates HR value to the organization.

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