Human capital—the elusive asset; measuring and managing human capital: a strategic imperative for HR - 2003 Research Quarterly

HR Magazine, March, 2003 by Leslie A. Weatherly

2. Executives have long argued that superior people management practices" will result in "superior business profits." The question remains, however, how do you go about measuring progress? Thousands of texts, theories, articles, and working papers have been put forward and the best thought leaders of the past decade have offered their opinions on this subject. The good news is that it appears that we are making progress. The answer has to do, in part, with the Universal acceptance of the "language of members." This is a language that can be readily understood across organizational and functional lines and, as importantly, is universally understood outside the organization as well, i.e., within a "global context."

RECOMMENDATIONS: Get acquainted with the business metrics that are relied upon by your CEO and management team to run the business. Establish associated HR business metrics that are aligned with the goals and objectives of your organization; this includes establishing an initial baseline for each measurement, as well as industry benchmarks for comparative purposes. Ensure that the metrics established are not simply based on transactions, but are clearcut, indisputable measures of the success, failure, improvement, or decline of any program or function for which HR provides oversight; frame recommendations related to these programs based on the qualitative and quantitative information obtained from this measurement process.

3. Technology-based learning tools, such as audiocasts, Webcasts, computer-based learning software, and simulated job training models enhance the opportunity for individual and group learning in remote settings. These tools are especially useful for new hire orientation, new job or task certification, and safe work practices training where the communication of substantial information in a consistent format is important and cost is a consideration.

RECOMMENDATIONS: Introduce and/or optimize the use of HR e-technologies, such as HR self-service options on the corporate intranet, distance learning opportunities, regional staff meetings, etc., in order to improve staff interaction and networking opportunities, convenience, and to reduce the cost of employee learning opportunities at the same time.

4. Human resource development is responsible for anticipating and preparing the workforce of the future; at the same time, this function cannot lose sight of the fact that it must maintain the competencies of the existing staff. This is a double-edged sword and requires balance and perspective.

RECOMMENDATIONS: Develop continuing education and training programs designed to maintain core competencies; partner with universities, colleges, and other learning institutions to supplement in-house training efforts when economically feasible and/or time constraints make this a requirement; encourage active participation by interested parties in setting objectives and design and implementation processes to increase the likelihood of program success.