HR Needs To Continually Reinvent Itself
Moving to Guidance
Guidance builds on benchmarking (which sets
a baseline for how your organization compares
to others) and best practices (highlighting
which practices others have successfully used).
Guidance focuses on what should be done to
deliver your organization’s results from human
capital investments.
Step 1: Define desired results
HR is not about HR but about helping five
stakeholders receive outcomes that matter to them:
employee (productivity and wellbeing), strategy
(direction and execution), customer (net promoter
score and customer share), investor (financial
results and intangible confidence), and community
(reputation).
Step 2: Classify human capital initiatives
There are thousands of human capital initiatives
(processes, practices, or interventions) that have
been and can be implemented. We have classified
these complex ideas into four human capital
categories and identified specific initiatives in
each pathway: talent (9 initiatives), leadership (6
initiatives), organization (12 initiatives), and human
resources (9 initiatives). These four pathways and 36
initiatives capture the breadth of human capital.
Step 3: Measure human capital initiatives
Each of the 36 human capital initiatives can be
measured in several different ways: by the perception
of employees within the organization through
surveys, with indicators from organization data (e.g.,
productivity of employees measured by revenue or
profit per employee, etc.), or by public indicators
accessed through social media. For example, in the
United States, the Securities Exchange Commission
(SEC) now requires disclosure of human capital
metrics that can be compared to others.
Step 4: Determine which human capital initiatives
deliver desired results
Algorithms determine which of the 36 human capital
initiatives impact each of the five stakeholder results.
These algorithms provide guid0ance about where
to invest in human capital to deliver the outcomes
that matter.
Step 5: Invest in the human capital initiatives
that matter most
Once the prioritized human capital initiatives are
identified, they can be innovated and improved.
Instead of putting resources into what other
companies are doing (best practices), companies can
invest in tailored work they should do to achieve their
outcomes.
Step 6: Monitor the impact of human capital
investments on results over time
An organization guidance system is not a single
event or snapshot but a longitudinal evaluation of
which human capital investments lead to desired
outcomes.
HR Strategy & Planning Excellence presented by HR.com March 2021 15 Submit Your Articles
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