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The ROI of Human Capital: Measuring the Economic Value of Employee Performance

The Ultimate Question 2. Introduction to Corporate Finance: Behavioral Risk Management Hersh Shefrin. Happy Money Elizabeth Dunn. Flap copy The mission of quantifying the value each employee brings to your organization is a crucial task, and not one to be taken lightly.

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But how do you accurately determine the contributions of your people and use that knowledge to improve your company's overall performance? Now in a brand new edition, The ROI of Human Capital provides you with a complete, reliable method for measuring the contributions of your people to corporate profit. Fully updated with new metrics, this long trusted resource offers a rare blend of management expertise and quantitative measurements, showing you how to gauge human costs and productivity at three critical levels: Macro-level data is the launching site of any ROI assessment system.

Examples and proven formulas illustrate how to combine quantitative and perceptual measures into a corporate human capital scorecard. The book introduces you to the five key indexes of change: This is the process arena, which typically sprawls across business units and is therefore difficult to manage and measure. A detailed five-point approach shows how to "tame" processes and add value to them, specifically in terms of service, quality, and productivity.

The ROI of Human Capital : Measuring the Economic Value of Employee Performance [Hardcover]

You'll discover how to build a performance matrix that enhances the fundamental HR activities--planning, acquiring, supporting, developing, and retaining--by connecting them to the five indexes of change. Written by Jac Fitz-enz, the man widely regarded as the inventor of human performance bench-mark-ing, The ROI of Human Capital, which won the Society for Human Resource Management Book of the Year Award in , brilliantly shows how to integrate these levels into a single, end to end system of human capital valuation reporting.

It also helps you weigh the potential effects of such practices as HR restructuring, outsourcing, using contingent workers, and merging with or acquiring another company. In this groundbreaking guide, the cofounders of ROI Institute, Jack Phillips and Patti Phillips, provide the tools and techniques you need to use analytics to show top decision makers the value of HR in your organization.

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Focusing on three types of analytics - descriptive, predictive, and prescriptive - Making Human Capital Analytics Work shows how you can apply analytics by: Much more than a guide to using data collection and analysis, Making Human Capital Analytics Work is a template for spearheading large-scale change in your organization by dramatically influencing your department's overall image within the organization.

The authors take you step-by-step through the processes of using hard data to drive decisions and demonstrate the tangible value of HR. You kw that your department is more than administrative and transactional - that it's an integral player in your company's strategy. As an academic and applied researcher, the book is okay because of the return on investment ROI measurements that are presented in chapters 2 and 3.

It'll be a greater ROI if 2 or 3 of the articles are published. The bottom line is that if you aren't going to apply the metrics in Chapter 2 and 3 in an academic or professional setting, borrow the book from a local public library and photocopy the chapters which will be of most benefit to you.


  • 8 editions of this work?
  • The ROI of Human Capital : Measuring the Economic Value of Employee Performance?
  • Christmas Day.

I would not recommend this book. It does a fair job of framing the core issue with HR: It then fails where we most need it to succeed, in proposing practical solutions to the problem. It offers a series of metrics revenue per employee, satisfaction per employee that are all either quite basic or largely useless and would not be considered credible by the individuals holding power and decision rights within an organization CFOs, GMs, etc. Unfortunately I view this book as emerging 20 years too late.

These metrics may have been innovative then, but are far from it now. The true ROI of human capital is no longer taking some metric and dividing by the number of employees, or calculating back of the envelope the productivity lost due to employee attrition.

Making Human Capital Analytics Work: Measuring the ROI of Human Capital Processe | eBay

Cutting edge organizations which we all aspire to build by reading these types of books are doing far more than this book even contemplates. Using data and regressions to identify what makes great managers or drives individuals to quit for example and complicated multi-factor problems.

These problems are the key to unlock the ROI of human capital, but unfortunately the book does not delve into them.

Measuring the Economic Value of Employee Performance. The twenty-first century has brought along an immense wave of innovations, including a new need for the structure of human resource departments. Upon reading through the first few pages, it is clear that the old strategies and methods utilized by human resource managers and professionals requires a fresh approach and Fitz-Enz does not wait to near the end of the book to propose his grand ideas.

Recruiting high contributing employees is more than mere work performance, it is about developing fully satisfied and consistently engaged employees that will result in a high return on investment ROI and low turnover.