Investing in People

A Logical, Proven Framework for Understanding the Economic Value of Human Resources Investments How to choose Human Resources investments that deliver optimal strategic value--"and eliminate those that don't" Best-practice metrics and analysis techniques for talent management, performance management, health and wellness programs, and much more "Investing in People" introduces a breakthrough approach to Human Resources (HR) measurement that systematically aligns HR investments with organizational goals and helps make HR the true strategic partner it needs to be. Wayne F. Cascio and John W. Boudreau show exactly how to choose, implement, and use metrics to improve decision-making, optimize organizational effectiveness, and maximize the value of HR investments. You'll master crucial foundational principles such as risk, return, and economies of scale--and use them to evaluate investments objectively in everything from work/life programs to training. Cascio and Boudreau also introduce powerful ways to integrate HR with enterprise strategy and budgeting and for gaining commitment from business leaders outside the HR function. If you truly want "a seat at the table"--or if you want to "keep" the one you have--you'll find this book utterly indispensable. Free software available onlineYou don't need to be a math wizard to get results from "Investing in People"! Visit www.shrm.org/publications/books to access software that automates virtually all of this book's key formulas and calculations. Foreword xiAcknowledgments xiiiAbout the Authors xivPreface xvPlan for the Book xvii Chapter 1: Making HR Measurement Strategic 1Chapter 2: Analytical Foundations of HR Measurement 21Chapter 3: The Hidden Costs of Absenteeism 43Chapter 4: The High Cost of Employee Separations 67Chapter 5: Employee Health, Wellness, and Welfare 99Chapter 6: Employee Attitudes and Engagement 125Chapter 7: Financial Effects of Work-Life Programs 151Chapter 8: Staffing Utility: The Concept and Its Measurement 171Chapter 9: The Economic Value of Job Performance 195Chapter 10: The Payoff from Enhanced Selection 223Chapter 11: Costs and Benefits of HR Development Programs 245Chapter 12: Talent-Investment Analysis: Catalyst for Change 271Appendix A: The Taylor-Russell Tables 285Appendix B: The Naylor-Shine Table for Determining the Increase in Mean Criterion Score Obtained by Using a Selection Device 297 Index 309