Financial Analysis for HR Managers: Tools for Linking HR Strategy to Business Strategy

8. Financial Analysis of Human Resource Initiatives

Obviously, making good HR decisions does not always require developing spreadsheets and utilizing their built-in financial functions. However, it does always require thinking logically and carefully about the financial implications of your recommendations and actions. It is neither possible, nor desirable, for this chapter to provide plug-in templates for all the kinds of decisions your HR department will make. Instead, this chapter has three goals. The first is to highlight situations in which financial analyses can improve HR decision making. The second is to provide examples of how you can apply the simple financial tools discussed in the previous chapter in these situations. The third is ...