【正文】 es it benefit your pany? And what barriers do you face in implementing? And are you achieving your eHR goals? 15 People Management = Higher Returns ? In addition to supporting Becker and Huselid?s 1998 results, the 2023 Watson Wyatt Human Capital Index study showed precisely which HR practices have an impact on the bottom line. 49 specific HR practices across 6 dimensions played the greatest role in creating shareholder value. The research quantified exactly how much an improvement in each practice could be expected to increase a pany?s market value. For example, a pany that makes a significant improvement (one standard deviation) in all of the practices categorized under “Total Rewards and Accountability” should see its value improve by percent (see below), and a significant improvement in 43 key HR practices is associated with an increase of 47 percent in market value. Additionally, one dimension, Prudent Use of Resources identifies six practices that diminish shareholder value (. training that is not connected to the business objectives and not evaluated for ROI). – % impact on pany market value from total rewards and accountability – 9% impact from a collegial, flexible workplace – % impact from recruiting and retention excellence – % impact from the integrity of munications – % impact from the implementation of focused HR service technologies – % loss from nonprudent use of resources ? Careful inspection of all the data shows that for every available correlation calculated over time, the relationship between past HR practices and future financial performance is stronger than the relationship between past financial outes and future HR practices. This is the first study to show that HR practices actually increase financial performance (.41 correlation) instead of inferring that panies that make more money can afford better HR practices (.19 correlation). 16 Critical Competencies Produce Results ? The 1998 Watson Wyatt study, Competencies and the Competitive Edge, consists of survey responses from 1,020 anizations in North America and indepth case studies of 17 panies. The most critical employee petencies by industry: ? Development of the critical petencies was positively correlated to the quality of developmental solutions and the employee’s motivation. Succession planning, promotional opportunities, mentoring programs, onthejob learning and career workshops all seem to be significant factors in the individual’s performance and contribution level. 17 Critical Competencies Produce Results ? The 1998 Watson Wyatt study, Competencies and the Competitive Edge, showed that when an anization identifies and municates the core petencies that it needs to be successful in the present and the future, it has developed a powerful tool to help meet its goals. Competencies define and municate an anization’s strategy and help employees to understand that strategy and achieve its goals. The many roles that petencies can play in an anization include: – Articulating what the anization values – Providing a mon language for employees and managers to describe value creation – Establishing a new paradigm for human resource programs (anizational levers) – Focusing on the development of the individual instead of an anizational structure – Linking pay, promotions and growth directly to what the anization values to be successful – Guiding employees and managers to what is expected and how value is defined even in times of dramatic change and restructuring ? Competencies serve as a powerful munication vehicle to focus all members of the anization on the skills and activities that will create both value and wealth. ? Competencybased programs can make a difference to the bottom line. Analysis of the financial data clearly shows that panies with petency based programs perform better in the marketplace. Such programs help focus the anization and all the individuals in it on what they can do to add value to the anization. ? Contributions are rolerelated rather than positionrelated. Adopting this view of contribution to value will help anizations think differently about their human resource and development programs. Organizations can focus on petencies needed for the future and identify the roles that employees do and must play. ? Programs that build employee mitment can bring great returns. Data from this and other Watson Wyatt studies clearly demonstrate that both individual and anizational performance increase when employees are mitted to their panies. Ensuring that anizational levers that build employee mitment are in place and working will affect the bottom line. ? Training is important, but it is no substitute for good management. A large majority of the anizations participating in this study identified training and development as the driver of future corporate success