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Establishing a cost containment objective for the human resource function is the wrong objective. It is basically a negative objective that relies on reactionary management. Establishing an objective such as being a “world class organization” is the wrong objective because it is too vague and reality is in the eye of the beholder. Establishing an intrinsic value growth objective for the human resource function is the right objective because it is positive, encourages proactive management, includes cost control, and because reality can be understood by everyone in factual, quantitative terms.
Human Earning Power® is the right strategy for achieving a human resource intrinsic value growth objective. Human Earning Power® uses the language of business – a quantitative language – to understand current reality and trends about the intrinsic value of a company’s primary value creation resource. It relies upon organized factual and proprietary information – all of which is available internally – to understand that value through two Human Earning Power® operating statements. The knowledge gained from the statements empowers management to take proactive value growth initiatives. Human Earning Power® also minimizes the economic and employee relations costs of human variation through quality improvements to human resource performance management processes that directly influence business performance.
If field unit financial budgets and operating statements were constructed following the same process used for employee performance evaluations, how would feel about the timeliness and reliability of the data you would get? Human Earning Power® brings the same discipline to managing human capital that is applied to financial capital.
- Improved worker contribution
- Greater control
- Higher process quality - less variation
- Lower human resource costs
- Greater business & workforce value
“How can a company obtain greater value from its human resource function?” was the question raised at the outset of this discussion. Human Earning Power® is the answer. The corporate human resource executive, because of his/her corporate perspective, is uniquely positioned to understand the contribution and cost variables that determine intrinsic value of individual jobs and organizational entities. With this corporate perspective, knowledge gained through Human Earning Power® operating statements, and greater operational control over human resource performance management processes that directly influence business performance, the human resource function creates value.
And all this can be done using money that is already being spent.
For an understanding of how Human Earning Power® can increase your sales and profits call (801) 596-1235 for a free consultation.