Goal:HR should provide measurable value to the organization
The Challenge How to describe and quantify the value of HR How to make the HR Partnership a stronger reality How to generate effectiveness measures for the HR Function
that show ROI Communicate to managers the full contribution HR is able
to make
Key Drivers Define what it means for them to be a "true business partner" Recognize the status of people-related performance measurements Understand the tools, mindset, framework and skills that
could be used to demonstrate strategic capability Make line management understand and value the extent of
the contribution they could make
Our Solution Each employee should be linked to one or more measures of
added value contribution Measures should be aligned with organizational goals Once the evaluation structures are in place, SAS HCM can
begin to deliver metrics on employees, productivity, and effectiveness.
Some common measures delivered with SAS HCM include:
Human Capital Value Added - Dollars of adjusted profit add
Human Capital ROI - Dollars of adjusted profit per each dollar spent on employee
compensation and benefits
Human Economic Value Added - Dollars of true profit generated per total FTE
Revenue Factor - Dollars of unit revenue generated per total FTE
HR Expense Percent - Internal and external HR expenses as a percentage of operating
expenses
HR FTE Ratio - Total number of FTE employees that each Human Resource FTE supports
How to describe and quantify the value of HR