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HR Effectiveness: Measuring the Financial Impact of HR Practices

Measuring the financial impact or effectiveness of current or planned HR initiatives is becoming increasingly important to the emerging role of HR as a value-added and strategic business partner.

This handbook provides a systematic way to plan for, conduct, and implement human resource measurement efforts that link with and drive exemplary business performance and financial performance.

The handbook includes an overall framework proven useful for measuring the financial impact of HR practices and processes and the specific steps involved in ensuring a practical though convincingly realistic measurement result. Various approaches that companies can use to measure HR impact and effectiveness, along with how a company can develop HR metrics based upon the balanced scorecard, are covered.


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