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GOOD HR IS GOOD BUSINESS!
The following is a summary of survey findings by major consulting firms describing the competitive advantage of effective HR strategies:
- Organizations that have a documented HR strategy … have 35% higher revenue per employee and 12% lower absenteeism rates than those with no documented strategy.
2002 Global Human Capital Survey- PriceWaterHouseCoopers
- Companies with superior human capital practices can create more than double the share value than companies with average human capital practices.
2001 Human Capital Index Study- Watson Wyatt
- Key links between human capital and shareholder value creation:
| Practice |
Impact on Market Value |
| Total rewards and accountability |
16.5% |
| Collegial, flexible workplace |
9.0% |
| Recruiting and retention excellence |
7.9% |
| Communications integrity |
7.1% |
| Focused HR service technologies |
6.5% |
2001 Human Capital Index Study- Watson Wyatt
- CFO opinions on the effect of human capital on business outcomes:
| Customer satisfaction |
92% |
| Profitability |
82% |
| Innovation/product development |
72% |
| Revenue per employee |
68% |
| Speed to market |
66% |
| Growth |
64% |
Mercer HR Consulting- CFO Research Services
- Great HR can be a true source of competitive advantage.
2001 Human Capital Index Study- Watson Wyatt
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