Link between HR execs and bottom line

A new Australian study shows that having an HR director on your executive committee pays off for the company.
||Last Updated: 12/05/2002

AUSTRALIA — Australian companies with a human resources director on the executive committee are achieving higher shareholder returns than companies with no HR representation at senior levels, according to a new study by Andersen Human Capital.

Andersen studied the top 50 companies on the Australian Stock Exchange to determine whether there was any correlation between senior human resources representation and business performance.

The study showed that the companies who included a human resources director on their executive committee experienced more than twice the growth in earnings per share than those who did not.