The ROI of Human Capital: Measuring the Economic Value of Employee Performance, Second Edition

Contents

PREFACE TO THE SECOND EDITION xi

Acknowledgments xv

PREFACE TO THE FIRST EDITION xvii

Acknowledgments xxii

CHAPTER 1

Human Leverage 1

The Shift 1

The New Human Capital Management Model 4

Effec ts on O rgani zatio nal Ma nageme nt 4

Data for Management 8

Making the Change 10

Data C onundr um 10

Two Aspects of Human Capital 11

What Human Resources Can Learn from Finance 13

HRP 14

People and Information 16

Data-t o-Value Cycle 17

Organizational Capacity 20

Surveying the Track 25

The ROI Race 25

Fals e St arts 2 7

Points of Measurement 29

Summary 30

Refer ences 3 1

v

vi CONTENTS

CHAPTER 2

How to Measure Human Capital’s

Contribution to Enterprise Goals 33

Const ancy a nd Ali gnment 34

How to Become a Business Partner 36

The First Step 38

Human-Financial Interface 39 ...