Demonstrating the bottom-line impact of HR: A competencies case study

By Lionel Laroche and Stephen Martin
|Canadian HR Reporter|Last Updated: 06/25/2002

One of the great frustrations for those who work in human resource management is an inability to make an economic case for an investment in HR tools and processes.

Yet the basic methodology for making effective return-on-investment (ROI) calculations to value the impact of HR initiatives has been around for some time.

Why have HR practitioners — seemingly themselves convinced of the business justification for investing in HR programs — shied away from using the same kind of analysis that other functions habitually use?