Investing In HR
When we say investing in HR, it should not only include compensation, benefits and vacation allotments, but also the factors that affect the organizational culture. This is a sure short way to gain a competitive advantage in the market.
Keeping a long term investment perspective for Human Resource in mind, the fundamental principle of “making investments to gain ROI” must be utilized by HR professionals while taking decisions.
How To Invest?
Senior managers and HR should always focus on developing functional systems. Every investment done in this respect should have corporate values and fundamental management in the big picture. For developing a corporate culture, organizations should bring various benefits programs into play like paid training, job stratification programs, adoption assistance etc. These kind of programs also facilitate in retaining the current talent pool.
To ensure that a program will provide a ROI, the best way is to have an idea about the financial impacts. Various organizations are also dependent on “Utility Theory” for determining the potential ROI of these HR investments and the economic value of human resource programs. A strong culture always boosts the loyalty, commitment and cohesiveness of the employees towards the organization, thus developing an innovative & productive workforce.