Forbes, July 24, 2023, By Dinesh Sheth
Human resources departments play a key role in facilitating several aspects of business: planning, hiring, training, career development, retention, compensation, benefits administration and compliance. Despite all these responsibilities factoring into a business's bottom line, quantitative measures of the returns on HR investment can be challenging to capture.
During economic uncertainties, and the resulting increased attention on the bottom line, some executives see HR departments as a cost center. But these teams significantly impact profitability in qualitative ways, such as their effect on employee happiness, engagement and satisfaction. HR leaders must proactively access, analyze and report on both qualitative and quantitative metrics to ensure they remain sufficiently staffed to improve employee engagement and demonstrate their resource allocation is where it needs to be. In particular, gathering and sharing data on benefits package utilization, efficient resource allocation and employee engagement will help HR better serve both employees and employers.
So how do you define, measure, analyze and share your ROI as an HR leader? Here are some key areas and strategies.
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