Human Earning Power®
Corporate human resource departments are charged with responsibility for “the people side of the business”. This implies responsibility for human performance. There is a contradiction between this implied responsibility and what corporate human resource departments actually do. Human resource departments primarily provide administrative and support services, and executives are increasingly questioning their value as evidenced by the steady growth of HR services outsourcing which is now a multi-billion dollar industry. How can a company obtain greater value from its human resource function? Human Earning Power® addresses the three issues that limit that increased value:
- Human variation
Human Earning Power® is a strategy for executing the most important human resource mission – human resource intrinsic value growth. A value growth mission aligns “the people side of the business” with the business mission. It benefits the business with better results, and it benefits the workforce with a sense of personal worth and loyalty grounded in the solid bedrock of achievement. Employees with these attributes are a source of strength and resiliency in times of stress. Aligned missions create “unity of purpose” and a competitive advantage in the marketplace.
The strategy consists of the following elements:
- A clear, understandable and measurable human resource mission
- Emphasis on factual, quantitative data for performance measurement
- Human resource control processes to improve performance management quality and minimize the costs of variation
- Uses money now being spent
- Relies on quantitative data
- Creates "unity of management purpose"
- Creates a competitive advantage through greater HR value
- Simplified human resource performance management tools to ensure employee understanding and focus of effort
Human Earning Power® looks at the people side of the business through the lens of numbers using a company’s proprietary and factual business and human resource information to understand workforce intrinsic value. Proprietary data are unique to their organization, and factual data are the basis for objective decisions tailored to the specific human earning power needs of the organization. The use of factual, proprietary data combined with objective feedback tools make Human Earning Power® unique and separates it from all other human resource strategies.
Human Earning Power® makes use of two operating statements that rely upon factual, quantitative data to understand what human resource intrinsic value is now, where it has been, and its trend. The Human Earning Power® mission identifies the destination – value growth, and the Human Earning Power® operating statements provide actionable information empowering proactive management when performance veers off course. The operating statements provide relevant human resource information expressed in a language that facilitates clear communication between business and human resource executives regarding performance, needs and value growth strategies.
Business executives understand that variation and quality have an inverse relationship and that variation increases costs. Yet human resource performance management processes invite variance with both human and economic costs that diminish human resource intrinsic value. Human Earning Power® brings standardization to work and work performance management processes to instill greater discipline in process management, harness work performance accountability, improve consistency, minimize variation, lower costs and increase value through higher management process quality.
Human Earning Power® uses human resource economics to understand reality and drive innovation to improve business results, increase employee morale, build esprit-de-corps and grow workforce value. Although it relies on numbers it is not a strategy designed to reduce people to a set of numbers. It is designed to invigorate and spur growth that leads to greater achievement, more security and added corporate value. Human Earning Power® increases profits and makes money already being spent more efficient by revitalizing existing human resource tools and programs to create a competitive workforce advantage in the business marketplace.