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From time to time, Hilltop Global Associates, LLC will provide the latest business news relevant to global human resources and organization effectiveness. Executive Leadership "Change doesn't come from a slogan or a speech. It happens because you put the right people in place to make it happen. People first." Jack Welch Increase Business Value "There is a clear relationship between high-impact HR practices and increased business value: 47% greater business value." Watson Wyatt: Human Capital Index Increase Profitability "No company can afford not to use [HR] practices because they lead to vastly superior financial performance." Pfau and Kay: The Human Capital Edge Increase Revenue "Companies with formal performance management programs produced better financial results than those without." McDonald: Impact of Performance Management Programs Impact on bottom-line "Employee-involvement practices show a significant bottom-line return. In 1999, companies that were big users of employee-involvement practices such as information sharing, skills training, rewards programs, and empowerment efforts boasted a 66 percent higher return on sales, a 20 percent higher return on assets, a 20 percent higher return on investment, and a 13 percent higher return on equity." "This study clearly suggests that the kinds of practices that HR develops and supports have an impact on the bottom line," Lawler says. "While HR doesn't directly produce revenue -- it doesn't go out and find new business or open new markets -- HR certainly improves the effectiveness of the organization, which allows the company to find new business or open new markets." An intensive study of management practices in Fortune 1000 companies by Ed Lawler and Susan Mohrman of the Center for Effective Organizations at the University of Southern California. Click here to view more of the Latest News. |
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