In today’s business world, it is not good enough for human resource managers (HRMs) to simply create initiatives, programs, and processes as proof of their excellence. HRMs must also possess a level of business acumen that meets or exceeds that of other C-suite executives—in order to build appreciation from senior leaders for the work they do.
In addition, HRMs must communicate in the preferred language of other departments, managers, executives, C-suite executives, the board of directors, and competitors. This language must communicate in terms of metrics, results, cost, impact, and return on investment (ROI).
Enter HRQ
I am coining this HR strategy as, Human Resources Quantification (HRQ). I define HRQ as the strategic process of systematically linking human resource actions to quantifiable returns to deliberately forecast and deliver measurable ventures that guarantee organic and perpetual maximization of ROI for all stakeholders.
HRQ should not be compared with other HR processes, such as HR metrics or HR analytics, because they are not strategies for strategic decision making, designing, and innovating. HR metrics and analytics are used after implementing a program or initiative, when valuable company resources—funds, time, and labor—have already been used. HRQ differs from existing HR strategic business theories because it does not seek to measure an HR program or initiative after it’s been implemented, but long before the program or initative is born.
HRQ requires the strategic outlining of several sequential and analytical steps that come long before design implementation. Using HRQ, companies can quantify the ROI of any venture to strategically cut waste and cost by tactically selecting and investing only in the ventures that guarantee the highest possible ROI. HRQ reduces the risk of wasting company funds and resources.
Moving Forward
I invite you to take a journey with me as I outline and breakdown HRQ, its best practices, and how to strategically implement it into your organization in a 12 series blog.
