This briefing proposes a framework designed to help move the Human Resources function from measuring its own sphere of activity to measuring important aspects of the organization’s human capability that drive critical performance outcomes. Three main human capital drivers are described in the context of the framework.
Document Highlights
The information in this briefing is the result of a project undertaken by The Conference Board of Canada in collaboration with a Working Group of Human Resources (HR) leaders and professionals. They identified three critical human capital (HC) drivers of organizational performance: an engaged workforce, effective leadership, and a strategy and processes to manage talent. A framework was then developed and applied to the drivers. They also developed tools to arrive at a composite measure for each driver, given that the drivers are complex constructs.
The hypothesis is that these HC drivers are leading indicators of firm performance. Even small improvements in these areas resulting from strategic HR interventions should deliver significant return on investment in any organization. With the tools, organizations should be able to track the rise and fall in each measure against inputs or investments in people, as well as against specific organizational performance outcomes.
There are no reviews yet.