Human Capital Management Adds to Bottom Line

Workforce development and talent retention and recruitment have become much more important responsibilities of economic development organizations.

Are you trying to understand the connection between human resource quality and investment and competitive business performance? Recent research by Watson Wyatt Consulting says there is a clear connection. HR strategy and investments pays off in terms of business competitiveness and financial performance.

For many companies business is tougher than ever. With no let-up in sight, there continues to be a need for companies to focus on maximising real, sustainable value from human capital as never before. The results of Watson Wyatt's fourth year of global human research shows that the link between human capital management and real business value is stronger than ever.

Here is what they found:

- Organisations with the best human capital management deliver significantly more shareholder value than those with poor people practices

- Excellence in HR practice is similar across the world, with some interesting local variations

- The key practices associated with higher value continue to show up in bear and flat markets, with the emphasis evolving over time, as do the HR practices that are linked with a loss of value

- When companies tune their human capital management to focus on both employee commitment and customer satisfaction, rewards for shareholders are substantial

- The effectiveness of the HR function itself is a key factor – to drive value from human capital, well designed practices and a highly efficient HR function closely aligned with business needs are essential.

Go here to learn more.