How can HR demonstrate measurable connection between its initiatives and business outcomes such as growth, productivity, profitability and competitiveness?
SB The most direct answer is this: HR must stop measuring activity and start measuring impact. As one CHRO put it bluntly, ‘You may know you’re adding value, but unless the rest of the business knows it too, and you have the data to prove it, it doesn’t matter.’ In today’s business environment, HR has two clear mandates: make money or save it.
The foundation of measurable HR impact lies in people analytics- the systematic use of data to connect people decisions to business performance. High-performance organisations consistently leverage HR as a strategic partner, emphasising data-driven decision-making and aligning HR initiatives with business goals. When HR leaders tie learning and development to an organization’s biggest business priorities, they are 122% more likely to meet or exceed their highest-priority metrics than those who do not. In...
