An integral part of HR management consists of continuous analysis and evaluation of the approved HR strategic plan. This is to facilitate any required course corrections, adjustments and control of the plan and its subsidiary parts during the entire period for which the plan is relevant.
It is important that the value HR brings to the table is consistently established during the analysis and evaluation. Any HR plan works in tandem with the company's overall strategy and must show how HR's strategic objectives will assist, support and are vital to the company overall success.
HR's strategic mandate is demonstrated by its ability to develop, implement, and measure systems that better recruit, attract, train, motivate, retain, and develop its human capital. HR's value-based strategic mandate also frequently includes how best to foster a culture that facilitates melding the diversity of the human capital into goal directed activity.
An organisation's human capital refers to the financial worth of its employees' skills and knowledge. Human capital consists of the employees' education level and training, their acquired skills, intellect, and their health. Therefore, human capital is considered an intangible asset or value that has the capacity to boost efficiency and effectiveness, resulting ultimately in higher profits.
It can thus be inferred that the more an organisation invests in the training and development of its human capital, the more profitable and successful it will likely become.
I recommend that HR professionals consider including levels of commitment, relevant competencies, or real-time training plans to ensure that all the salient elements of HR value are captured and reported.
Only a fraction of the HR professionals in our local industries possess the expertise, confidence and business acumen to keep up with changes in the HR function, much less shape its new direction. Many business leaders have remained stuck in antiquated mindsets that thwart any attempts at innovation that their HR managers may propose.
However, it is up to HR leadership to build a compelling business case for how HR can support the corporate strategy and thereby create HR value. HR leaders seeking to build HR value, must identify credible and feasible solutions and responses to the contemporary challenges of identifying the right talent and providing the support and tools to develop and retain the best people.
Success in this area should be measured by relevant performance measurement tools and metrics. There should be a measurement system that showcases the impact of HR on business performance by showing the role HR plays in implementing strategy.
One key measurement tool in value creation is the return on investment (ROI). Companies must consider the value of investing in the training of their human capital and the development of the requisite skills needed to keep the business sustainable and achieve its corporate objectives and be made to view this as an investment and not as an expense (incidentally
