Wednesday, June 11, 2008

Why Measure the Effectiveness of HR?

In today's economic conditions, I believe it is critically important for HR professionals to show value to organizations. We have heard "seat at the table" and "business partner" and "credible resource." I say, "Who cares!" What matters is that what your are delivering is adding value to the business. Value is either an increase in revenue a decrease in cost or risk reduction.

So, how do you know if you are adding value to the business? ASK THE BUSINESS LEADERS.

I am worried about our profession. I think we are at a critical juncture. We have been talking so long about being strategic, and sitting at the "table", that we have not focused on results.

As Sue Meisinger, retiring SHRM President and CEO, stated, "Stop asking for a seat in the executive office and instead ask yourself: How can I leverage what I know about Human Resources to help shape and serve the strategy of my organization?

In our experience, when you ask business leaders about how HR is performing they are not shy about giving feedback. Use this feedback and set metrics for your department. Monitor those closely and communicate RESULTS. Maybe then we can stop asking for a seat and actually get an invitation!
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