What areas concern HR managersWhat areas concern HR managersLabor shortages (retention, outsourcing)

Skill type shortages (technology, training)

Security & Privacy or security v privacy

Health care cost

Diversity & Benefits mix

Liability exposure

Accountability

These are the traditional “outcome” These are the traditional “outcome”

measures for HR performancemeasures for HR performance Employee satisfaction

Turnover rate and cost – absenteeism

Unit labor cost

Cost per hire

Healthcare claim cost

HR overhead cost per employee

HR Interventions that matterHR Interventions that matter

Self managed work teams and decentralization of decision Self managed work teams and decentralization of decision making as the basic principles of organization design making as the basic principles of organization design

Selective hiring of new personnel, diversity

Comparatively high compensation contingent on organization performance

Reduced status distinction and barriers, including dress, language, office design, wage differential across all levels (much earlier Peter Drucker said no more than 20 x difference between lowest paid and the CEO)

Extensive training

Extensive sharing of financial and performance data throughout the organization

Employment security

1

2

3

5

4

7

6

HR interventions matter on what HR interventions matter on what outcome or performance measures outcome or performance measures

Labor productivity

Operational outcomes

Innovation

Sales (growth, industry norms, customer)

Profit (growth, ROE, ROA, industry, survival)

Goal accomplishment

HR expenditures are an investmentHR expenditures are an investment

Not just measured against other HR investment, or

How our HR expenditures compare with industry averages for HR expenditure

But, fundamentally, viewed as an investment, how do resources devoted to HR compare with the return possible from alternative uses of those resources

HR as competitive advantage: HR as competitive advantage: - the total scorecard- the total scorecard

- find and use as many as you can - find and use as many as you can

The HR revolution

Financial variables

Customer variables

Internal variables

Learning and growth norms and expectations