Measuring the return on investment (ROI) of human resources programs (HR) is critical for success in today's business world and is an absolute requirement for HR professionals who are part of the senior executive team. Responding to the current accountability demands that continue to challenge human resource professionals, this updated edition illustrates the use of ROI methodology as a communication tool that strengthens the relationship with senior management as well as a process-improvement tool that enhances and improves HR's contributions to the bottom line. With this guide, human resource managers will prove their value to their companies by learning how to measure ROI in a variety of programs, policies, practices, and solutions; develop the ROI of HR with basic, step-by-step instructions; and collect, analyze, and report data with sophistication.
As a director of HR, I am continually surprised at the number of HR professionals that are disengaged from their company's profit and loss. A recent survey of business executives validated my personal observations about my chosen profession. According to this group, HR is often viewed as follows:
1. Neither Strategic nor Leaders
2. Resists Creativity
3. Enforces Silly rules
4. Impedes Change
5. Measured on Activities not $ Results
6. Henchmen for Top Management
7. Service Only
This important book will help us to address a good portion of the above. Having at least a basic sense of the financial arena will improve our integrity and respect in the eyes of upper management. Continually developing and implementing activities with no eye to the bottom line results in the current world-view of HR. I know that many within HR will disagree with me and that is fine. I realize there are pockets of excellence but as a general rule, we are still evolving.
The authors have performed the heavy lifting for us by publishing this book. It is an excellent place to start laying the financial foundation upon which we can make good decisions and grow our human resources departments into results-based teams. Their book teaches us to ask intelligent questions and to challenge the data. Most importantly, it instructs us in the imperative world of ROI. ROI should be the hallmark of every HR organization.
I hope you find this review helpful.
Michael L. Gooch, SPHR - Author of Wingtips with Spurs: Cowboy Wisdom for Today's Business Leaders
Overview
Measuring the return on investment (ROI) of human resources programs (HR) is critical for success in today's business world and is an absolute requirement for HR professionals who are part of the senior executive team. Responding to the current accountability demands that continue to challenge human resource professionals, this updated edition illustrates the use of ROI methodology as a communication tool that strengthens the relationship with senior management as well as a process-improvement tool that enhances ...