What HR data can’t tell you

HR data and HR analytics is becoming increasingly popular – and with good reason.  Good data and clever use of the data can make HR better. Data mining, charts and data reports are used to guide innovation and process optimization.  All good things. There is an argument among some people in HR that “you cannotContinue reading “What HR data can’t tell you”

Are you measuring performance or results? HR is often measuring the wrong one.

It is impossible these days to open a HR magazine, go to a HR conference or read a HR book without being overwhelmed by terms such as ROI on HR, HR analytics, KPI’s, measurement and Human Capital Management. These buzzwords which are trying to make HR ‘harder’ have really gained acceptance in the HR worldContinue reading “Are you measuring performance or results? HR is often measuring the wrong one.”

Should Human Capital be fully capitalized on the Balance Sheet?

Book value accounts for about 20% of a company’s market value today. The rest – 80% – is down to immaterial ‘assets’. This makes valuing companies very difficult indeed. There are many good reasons why book value always will be lower than market value. However one way to close this gap – and thereby makingContinue reading “Should Human Capital be fully capitalized on the Balance Sheet?”

ROI is a dangerous tool – here is how to use it

ROI (Return On Investment) has become the tool which HR increasingly use to show that they are adding value to the company’s bottom line. And rightly so. HR has the potential to create a lot of value to a company – also Shareholder Value. And this value  should be shown and highlighted. ROI is aContinue reading “ROI is a dangerous tool – here is how to use it”

Wrong assumptions lead to bad decisions

Human Capital is the ‘hard’ side of Human Resources. It is about making strategic decisions, measuring the impact and basing decisions upon ‘objective’ and measureable data. One of the most important things for a Human Capital Manager is therefore to get quality data. Without that you cannot make good decisions. Daryl Morey writes on HBR’sContinue reading “Wrong assumptions lead to bad decisions”

Does job satisfaction lead to increased productivity?

Job Satisfaction is one of the most researched concepts in Industrial Psychology and in HR in general. And one of the most robust findings about it is that it correlates highly with productivity. To which degree varies quite a lot. A large meta-survey by Judge et al. suggests that the correlation is about 0.3, butContinue reading “Does job satisfaction lead to increased productivity?”