JOHN LODDER: Higher results and profits by an excellent Human Resource Policy
Companies that invest in their people and that are highly capable in 22 key HR topics consistently realise a better financial performance than the less capable. In several topics, this correlation was up to 3.5 times the revenue growth and as much as 2.1 times the average profit margin.
In July the Boston Consulting Group (BCG) released a report, based on interviews with 4,288 leading business and HR executives in 102 countries. BCG found a positive correlation between capability and performance in 21 of the 22 HR areas measured.
