CIPD Human capital Valuation

Blog Post: Reward metrics based on business outcomes - an opportunity for HR  January 22, 2013 – 01:43 pm

By Tony Hatton-Gore, Reward and Human Resources Consulting

When times are tough we can expect more focus on the money. We see this in the news, whether exemplified by high profile individual cases such as those of former Governor General of the BBC George Entwistle and C4 racing pundit John McCririck; or by more esoteric issues as the implications of Basel III for relating financial sector reward to risk.

Organisations are looking for value from reward programmes generally, as well as in relation to the headline cases. For individuals reward may be seen as the hard edge of HR, as a job offer may help distil life decisions about career and employment aspirations.

Focus on reward spend at an organisation level is often about two aspects: communication and return on investment. 

As mentioned in the recent blog by Sylvia Doyle, the CIPD’s reward risks survey highlighted the importance of the role of reward communication in promoting employee appreciation of the value of the package and employee engagement.

However, organisations must be able to analyse the potential and actual impact of their reward policies to inform employee communication.

A recent Mercer report* included these findings:

Source: CIPD Bloggers

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Methodology: How the Latin America rankings were compiled  — Financial Times

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