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Proving the Value of HR: How and Why to Measure ROI (Practical HR Series) (with CD-ROM)

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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 manual 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. The CD-ROM includes two HR-ROI self tests, an evaluation planning worksheet, and a complete case study.

Measuring the return on investment (ROI) of human resources 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. HR managers and executives must show HR's contribution and prove that HR policies, practices, and solutions add directly to the organization's bottom line.

Proving the Value of HR is practical and equips HR with the tools necessary to tackle return on investment.

This book provides basic, step-by-step instructions to develop the ROI of HR. It is much easier to read than other ROI-based books and uses examples directly from the practice of human resources. It shows how the ROI methodology is a communication tool to strengthen the relationship with senior management as well as a process-improvement tool to enhance and improve HR's contribution.

The accompanying CD-ROM expands the scope of the book with 49 tools and templates, charts and graphs, a complete case study, self-assessment instruments, exercises, plus ROI formulas in a spreadsheet-ready format.

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Product Details

  • ISBN-13: 9781586440497
  • Publisher: Society For Human Resource Management
  • Publication date: 8/1/2005
  • Series: Practical HR Series
  • Edition description: with CD-ROM
  • Pages: 256
  • Product dimensions: 6.00 (w) x 9.00 (h) x 0.60 (d)

Meet the Author

Jack J. Phillips, PhD, is a world-renowned expert on measurement and evaluation and the chairman of the ROI Institute. He provides consulting services for Fortune 500 companies and workshops for major conference providers throughout the world. He is the author of Accountability in Human Resouce Management, The Human Resources Scorecard, and Managing Employee Retention. Patricia Pulliam Phillips, PhD, is an internationally recognized author, consultant, and researcher, a chairman of The Chelsea Group, Inc., and president and CEO of the ROI Institute. She is the author of The Bottomline on ROI, Measuring ROI in the Public Sector, and Retaining Your Best Employees. They both live in Chelsea, Alabama.

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  • Posted May 6, 2009

    more from this reviewer

    I Also Recommend:

    All Important ROI

    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

    Was this review helpful? Yes  No   Report this review
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