The Integrity News
Vol. XIII No. 5
ISSN 1081-2717
"objective risk management services"
March 4, 2004
Editor's Note:
We have been telling our readers in recent
years that a movement in many companies
is to have their HR professionals migrate to
performing more strategic tasks. The secret
to giving HR professionals more time, is to
use online HR Administration to accomplish
the mundane and repetitive HR tasks. With
more time, the HR staff members can develop
the data that will enable them to contribute
information and ideas to help reduce costs,
grow revenues, and drive process and product
innovation. This more strategic level of effort
is Human Capital Management. The data, or
"human capital metrics" produced by HR
automation, are now used by HR professionals
to provide insight for company management.
In a Feb. 28, 2004 article on RTOonline.com,
entitled "Top Companies Stepping Up Efforts
To Measure People", it is pointed out that "as
the service-based economy continues to grow,
companies ( for the sake of their bottom line )
must be more rigorous in how they measure
and engage with their employees."
"Leading corporations will be increasing their
investment over the next three years to measure
how people practices such as low turnover,
diversity, and the engagement of their employees
contribute to the bottom line." Of the 110 HR
senior managers interviewed, 76% predict that
they will see increased top-level backing during
the next three years, and 36% of them already
get their business unit leaders involved.
The major reason that top management now
lends increasing support to projects focusing
on people metrics is that those efforts help lower
costs and improve return on people investments
while helping align those investments with business
strategy. "HR leaders need to determine how to
best link people measures to business processes."
The article also says that:
As a company grows, unit managers become less involved
in the selection and execution of people measures.
Presumably they get busier.
39% of companies surveyed reward managers in bonus plans
based in part on data from people metrics --- and the
percentage is increasing.
Companies commonly link cost reduction and revenue
growth to people metrics; however, the more successful
people metrics are linked to process and product innovation.
The following are the most important points
for top level management:
Involve HR professionals in the development of overall
business strategy.
Enlist leaders from outside the HR department to help
develop and back human capital metrics.
Collaborate with business unit managers to ensure that
people measures link to the strategic goals of the
business units.
Focus more attention on the links between people measures
and major performance drivers such as customer satisfaction
and innovation; and, place less emphasis on their connection
to cost reduction, revenue growth, and other near-term
financial outcomes.
Include human capital metrics in bonus plans.
Audit metrics both internally and externally.
Develop ad hoc analytical reports that detail how people
investments can deliver better business results.
Human Capital Management helps drive operating
performance and helps create value. But, it is only
through using HR automation that your HR
professionals can obtain the data that they need to
create the metrics. Those metrics then help you
lower costs, speed transactions, increase productivity,
reduce turn-over, and accomplish a myriad of other
worthy goals and objectives.
Our subscribers who are already clients know that
their client interface already hosts a significant
amount of their personnel data. They already have
full service HR Administration online. In addition
to Background Checking, they save additional time
with other fully-integrated features such as Online:
Job Applications, Interview Notes, Resume Imaging,
Employee Files, Security Testing, Form Preparation,
Employee Self-Serv, HR Document Imaging, and
for printing their metrics --- very flexible Report
Generation.
To discuss the leverage and the savings produced
by using Web-native online HR Administration,
call The Integrity Center, Inc. at (972) 484-6140.
Helping you manage your risk is what we do.
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