Topic > Human Capital Measurement - 1394

IntroductionIn the past, human resources (HR) professionals have created staffing, compensation, training, and other employee-focused programs and policies and kept companies legally compliant. The HR function tended to be positioned at the end of the business chain and often focused on performing tasks rather than achieving results (Dunn, 2006). But over the past decade, HR professionals have worked to become business partners by aligning their work with company strategies. This is important because being strategic means having an impact on the company's goals and objectives. As a result, HR professionals spend more time with general managers and their counterparts in sales, marketing and production to ensure that HR work adds value to the organization and helps deliver business results. One of the most effective ways for HR to position itself as a strategic business partner is to do so by supporting the strategic objectives of the business through key performance indicators. Key performance indicators (KPIs) measure human capital outcomes, such as talent management, employee engagement and high performance, explain the company's business, financial and strategic objectives, promote partnership with senior management to organizational success and demonstrate the value of human resources to the organization.