The search for value creation by HR functions has always been legitimate but
in the past has tended to incorporate suspicious elements of self-fulfilling
prophecy when compared to the value assures presented by many other
disciplines within businesses. In our view, the HR function has often tried in
vain to convince others of the value inherent in delivering HR support by
reference to esoteric HR centric models. We believe that it is now possible to
unlock the value of the 'people quotient' with clear and unambiguous value
drivers and measures which connect directly with broader business metrics.
The HR function has a key role to play in helping organizations to understand
their sources of value (strategic style) and in blending the work environment,
employee competencies and the lead HR systems which support the
organization. The analysis and professional skills required to identify and
develop value in this area are very much a part of the development of the role
of HR as strategic Partner to a business.
Measures such as employee engagement deliver a much closer picture of the
link between the people in a business and the overall business performance.
An HR function which is able to prioritise its investments in financial human
and infrastructure resources and link these investments to improved business
performance is placing itself at the heart of value creation.
HR performance metrics are measuring value creation within businesses.
More sophisticated HR functions are using these metrics inside and outside of
the function to broaden the scope of business management so HR leaders
are now using robust data to measure the impact of investments.
For HR professionals the challenge is not so much how quickly they can
embrace and deploy these value drivers but more whether they can retain
ownership of them before other disciplines claim them for their own. The
Human Resource Management in the Information Technology industry is
discussed in the next chapter.