THE VALUE OF BUSINESS INTEGRATED HUMAN RESOURCES
We have analyzed many credible studies and have drawn from decades of our own real-world business experience, all leading us to clear conclusion: Real Human Resources programs (beyond the basic compliance stuff) that are fully integrated as a top business priority and fully supported by management, will create the greatest impact to the most important financial results and measurements, with the exception of your core Product or Service. Yes, that is a Bold statement!
A Preview of the Data
Take look at some important business results as reported by Harvard Business School’s review of the HR Scorecard. Take a look at companies with full integration of HR programs (i.e. talent and performance management, continuous learning and training, communication process, organization development) compared to companies that fail to prioritize HR as a fully integrated company strategy:
- HR as a Top Priority: 20.87% annualized employee turnover
- HR as a secondary Priority: 34.09% annualized employee turnover
- HR as a Top Priority: Revenue achievement of $617,576 annualized revenue per person
- HR secondary Priority: Revenue achievement of $158,101 annualized revenue per person
- HR as a Top Priority: 11.06 Market value to Book Value
- HR secondary Priority: 3.64 Market value to Book Value
The Harvard Report
The importance of HR within a company’s highest priorities is critical for real business success.