HR capabilities correlate with economic performance
Companies that have strong capabilities in HR topics such as talent and leadership engagement, behavior and culture management and HR strategy, planning and analytics show significantly better financial performance than companies that are weaker in those areas.
Analytics and key performance indicators (kpis) give hr a seat at the table
HR leaders who want a role in strategic discussions with the business must be able to quantify workforce performance. This goes beyond “input” metrics, such as cost and head count, toward more sophisticated “output” indicators, such as productivity.
KPIS should link to strategic actions
Even many high-performing organizations, which are generally more data driven, don’t use their KPIs systematically to formulate strategic actions. A clear prioritization and selection of KPIs and tools is needed to achieve the best results.
HR departments need to be more consistent in their investment decisions
Many organizations need to invest in HR more strategically to build capabilities. Among the HR topics rated as most important, companies showed only average capabilities and they weren’t specifically targeting their investments to improve those areas.
HR needs to listen more to internal clients
Non-HR respondents reported a strong need for action with regard to approximately 36% of HR topics, particularly in core HR capabilities, such as staff capabilities and communication.
