According to Veritude, a Boston-based consulting firm, most company executives will be using employee return on investment to measure the effectiveness of their human resources department. This means that rather than looking at one factor, such as productivity or cost per hire, companies will roll all of their HR metrics together.

“It will be through the human return on investment that HR will prove its worth” Vin Cipolla, president and CEO of Veritude, states in an article from SupportWorld. “Recruitment Specialists for example, may be assessed based on their time-to-hire numbers. But, this metric says nothing about what the new employee will add to the company’s bottom line, in one year or in five. What’s missing is how well the recruiter is helping to achieve corporate objectives like product innovation or a quicker time to market.”

In a recent webcast, Dave Ulrich, principal at The RBL Group, and David Creelman, CEO of Creelman Research, focused on turning HR intangibles into tangible business values. When HR professionals see their roles from a larger perspective and are able to help build the firm's market value, they have greater impact say Ulrich and Creelman.

Current thinking suggests that when HR is run as a profit center, the HR function becomes a strategic resource integral to the financial health and growth of the company. And, in order to become a strategic resource HR must look less at the functions and more at the big picture strategies. Strategies that will build value-added HR practices and competencies that align with and accomplish strategic corporate goals.

Today, smart companies know that success in achieving corporate goals depends on people. HR can ensure success and a strong ROI by hiring best- fit people. People who fit within and embrace your culture, have the ability to know and understand their importance within your company, and will work hard to make a difference. How does a company find the best-fit people? Many companies choose to build an Employer Brand. Employer branding is the most effective tool for attracting, hiring, and retaining best-fit candidates in today's HR market. At Mason & Kichar, we'll help you achieve a strong employer brand through a strategic process of research, analysis, planning, implementation, and continuous monitoring. Is employer branding right for your company? Contact dkichar@masonkichar.com to find out more.