Get access to the exclusive HR Resources you need to succeed in 2018.
Sign up for free email newsletters and get more SHRM content delivered to your inbox.
Is your employee handbook keeping up with the changing world of work? With SHRM's Employee Handbook Builder get peace of mind that your handbook is up-to-date.
Build competencies, establish credibility and advance your career—while earning PDCs—at SHRM Seminars in 14 cities across the U.S. this fall.
Gain the skills you need to rise to the next level in your career. Jon us at SHRM's Leadership Development Forum, October 2-3 in Boston.
Members may download one copy of our sample forms and templates for your personal use within your organization. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organization’s culture, industry, and practices. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRM’s permission. To request permission for specific items, click on the “reuse permissions” button on the page where you find the item.
LAS VEGAS—Want to show your value as an HR professional? Measuring the state of your HR operations is a good place to start, Kristie W. Evans, CEO/thought leader of HR Logistics, LLC in Raleigh, N.C., told attendees June 27, 2011, at her presentation at the Society for Human Resource Management (SHRM) 63rd Annual Conference & Exposition on “How to Measure Your Current State of Human Capital Management and Build Credibility.”
But before beginning such an assessment, Evans said, HR professionals should ask themselves what pressures are creating the need for such a project. “Is it something that’s been requested? Is it because of complaints? Have there been reductions in staff? An increase in work volume? A reorganization?
“Why you are doing it influences what and how you will measure your current state of HR management,” said Evans.
A lack of standardization of HR metrics, the sense that HR is an expense without demonstrated return on investment, and poor alignment of HR processes and business goals often result in HR leaders facing a credibility problem even before they’ve begun measuring HR’s current state, said Evans.
“You have to work doubly hard to be objective and to assimilate the information you receive. And you have to be ready to act on what you might find out.”
Building credibility as a business leader requires that HR create credible and consistent measurements that are relevant to the specific needs of the organization and that are supported by reliable data that can be replicated so that the impact of human capital management can be charted over time.
“Take something like employee morale that seems to be distant from the bottom line,” said Evans. “If you can show that low morale is dragging someone down to working at 50 percent of their capacity, you can link that to quantify that as much as half their salary is being wasted. That’s real money.”
It’s easier to get senior leaders such as chief executive officers and chief financial officers to accept your findings if they’ve been involved in the process along the way, Evans said. It’s also beneficial to give them an analysis of the risks inherent in maintaining the status quo. “Will it make the business obsolete?Create security or compliance risks? Deplete precious resources?”
The process should conclude with a final report to executives that summarizes the results of your study, outlines a plan of action and describes how the plan aligns with the business’ goals and long- and short-term strategies.
“Show them how the solution—the ‘future’ state—reduces expenses or increases profits. Don’t wait to be asked for information about the state of human capital management. Show your leaders that this is information they need to know.”
Desda Moss is managing editor of HR Magazine.
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Please sign in as a SHRM member before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
HR Education in a City Near You
SHRM’s HR Vendor Directory contains over 10,000 companies