Investing In People: Financial Impact Of Human Resource Initiatives

A Logical, Proven Framework for Understanding the Economic Value of Human Resources Investments

• How to choose Human Resources investments that deliver optimal strategic value-"and eliminate those that don't"
• Best-practice metrics and analysis techniques for talent management, performance management, health and wellness programs, and much more

"Investing in People" introduces a breakthrough approach to Human Resources (HR) measurement that systematically aligns HR investments with organizational goals and helps make HR the true strategic partner it needs to be. Wayne F. Cascio and John W. Boudreau show exactly how to choose, implement, and use metrics to improve decision-making, optimize organizational effectiveness, and maximize the value of HR investments. You'll master crucial foundational principles such as risk, return, and economies of scale-and use them to evaluate investments objectively in everything from work/life programs to training. Cascio and Boudreau also introduce powerful ways to integrate HR with enterprise strategy and budgeting and for gaining commitment from business leaders outside the HR function. If you truly want "a seat at the table"-or if you want to "keep" the one you have-you'll find this book utterly indispensable. Free software available online You don't need to be a math wizard to get results from "Investing in People"! Visit www.shrm.org/publications/books to access software that automates virtually all of this book's key formulas and calculations. Foreword xi Acknowledgments xiii About the Authors xiv Preface xv Plan for the Book xvii Chapter 1: Making HR Measurement Strategic 1 Chapter 2: Analytical Foundations of HRMeasurement 21 Chapter 3: The Hidden Costs of Absenteeism 43 Chapter 4: The High Cost of Employee Separations 67 Chapter 5: Employee Health, Wellness, and Welfare 99 Chapter 6: Employee Attitudes and Engagement 125 Chapter 7: Financial Effects of Work-Life Programs 151 Chapter 8: Staffing Utility: The Concept and Its Measurement 171 Chapter 9: The Economic Value of Job Performance 195 Chapter 10: The Payoff from Enhanced Selection 223 Chapter 11: Costs and Benefits of HR Development Programs 245 Chapter 12: Talent-Investment Analysis: Catalyst for Change 271 Appendix A: The Taylor-Russell Tables 285 Appendix B: The Naylor-Shine Table for Determining the Increase in Mean Criterion Score Obtained by Using a Selection Device 297 Index 309

More than ever before, HR practitioners must empirically demonstrate a clear link between their practices and firm performance. In this book, two world-renowned experts on quantifying the value of HR present a comprehensive framework for doing just that. Wayne F. Cascio and John W. Boudreau provide powerful logic and proven financial techniques for looking inside the HR "black box," implementing human capital metrics that track the effectiveness of talent policies and practices, demonstrating the logical connections to financial and line-of-business, and using HR metrics to drive more effective decision-making. Drawing on their extensive practical experience, they show how to transcend the "peanut butter" approach to talent decisions and investments, in which organizations simply spread the same investments across the entire organization. You' ll learn how to focus investments where they matter most, and avoid them where they don' t make a strategic difference. Along the way, you' ll learn how to measure and analyze the value of every significant type of HR initiative, including hiring; training and leadership development; health, wellness, and work/life balance; retention; employee engagement; and much more.