January 13, 2005 | Posted By Diane Pfadenhauer | print this article

Use of Human Capital Measures Predicted to Rise

The recent survey by the Conference Board of human resources executives showed that 84% believe that their use of people measures to meet strategic targets will increase.  According to Stephen Gates, author of the report,

"When determining how best to demonstrate achievement, human resource managers must choose from the hundreds of metrics that are currently available to track every aspect of an HR department's endeavors to recruit, develop, and retain employees. What's imperative for the health of their businesses, however, is that these HR professionals tie these people measures more closely into their efforts to meet their companies' overall strategic targets."

Andrew Marritt of Andrew's Strategic Resources blog (listed on the blog list on the right), a blog dedicated to "HR, recruitment, staffing and employment trends," notes that the study further identifies, however, that only 31 percent of survey participants indicate that their HR executives have a strong understanding of strategic key performance indicators.  Even fewer (25%) consider their HR leaders capable of linking people measures to such indicators.  Further the study indicates that only 22 percent of these HR executives are able to identify strategic talent pools.

The survey shows how to make the case for people measures by overcoming these obstacles:

  1. HR needs adequate information technology to capture people data, yet only 19% of the survey participants believed their IT systems were up to the task.
  2. Internal politics over the perceived value of measurement and what to do with the results that may be critical of a manager's performance.
  3. Who presents the results to senior management?  HR or the line?  According to the survey, delivery by the line greatly enhances credibility of the reports.

My thought:  Strategic human resources management is truly about the ability of an organization to effectively direct the efforts of employees in the direction of the achievement of organizational objectives.  This cannot be done without adequate measurement.  Whether it is the line manager or HR staff that spearheads the process, it should not matter.  Human resources management is everyone's responsibility if organizations are to be most effective.  Organizations that hold themselves and their management accountable will be most successful.