Monday, July 19, 2010

Human capital management predicts stock prices

Human capital management is fast emerging as an essential core competency (possibly the essential core competency) for organizations.

Firms that invest significantly in training and developing their employees generally outperform the market. Investment managers would be well-served to pay attention to broad measures of human capital management as a factor in portfolio selection. Engagement = Revenue.

With very few exceptions, an organization's greatest assets do indeed "walk out the door" at the end of each business day. For those who are eager to measure human capital more accurately, who then wish to create a much greater return on investments in human resources for their organization, The ROI of Human Capital is a must read on this subject. This book is an absolutely indispensable resource for helping to achieve these objectives.

For most human resource professionals, measurement remains a critical area of weakness. To allow their organizations to tap the full potential of human capital as a source of competitive advantage, HR strategists need to engage the emerging field of human capital analytics. This would make it possible for organizations to develop and execute human capital strategies that are grounded in actionable business intelligence - rather than relying on the old standbys (intuition, one-size-fits all benchmarking, or accepted measurement myths within the HR profession).

Only then will organizations truly reap the benefits of unleashing their employees’ full capabilities.

For more see the White Paper.

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