【正文】 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. The highperforming panies identified it slightly more often than the others. 18 Market Capitalization of Talent Whereas at the start of the 1990s a pany39。 but even 39。s the stuff in smart people39。 invariably found themselves penalized by the markets. 19 Shifting Values, Shifting Rewards ? The shocks of September 11 and dramatic changes in employees39。 1999 The Gallup Organization. All rights reserved. Gallup Management Journal reported the following in 2023 based on the survey below: ? 19% of all employees are actively disengaged from their jobs ? 55% of all employees are not engaged in their jobs ? 26% of all employees are engaged in their jobs At a cost of $292355 Billion per year to the US economy. 10 HR Adds Shareholder Value in Europe ? Great people management equals great shareholder value: European panies with the best human capital management deliver around twice as much shareholder value as their average petitors. ? Great people management practices persist: The key practices associated with higher value continue to show up in bull, bear and flat markets, with the emphasis evolving over time. And so do the HR practices which are linked with a loss of value. ? Great people management travels well: Excellent HR practice is similar across the world, with some interesting local variations. ? Great HR builds great people management: The effectiveness of the HR function itself is a key factor – to drive value from your human capital you need great practices and a highly efficient HR function which is closely aligned with the business39。old economy39。s heads. 20 HR Factors Affect Profit 15% of profit performance is driven by: ? Management participation ? Open management style ? Taking some risks, but not too many ? Top managers spending 20% of time with customers ? Around 20% of top management should be outsiders ? Management training is deemed important ? Top managers are effectively incentivized ? Succession planning is done ? A good appraisal system is in place ? Employees get feedback 21 HR Factors Affect Market Value 26% increase in market value in 2023 was driven by: ? Use of knowledge and contract workers ? Recruiting excellence ? Consistent panEuropean HR practices ? Good unionmanagement relations ? Lack of hierarchy, clear leadership ? Teamwork and 360176。intangibles39。The Value of HR This presentation provides summary results from key HR research done over the past fifteen years. Compiled by Darin Phillips 1 Shareholder Returns The five highest return to shareholders from 19721992 (Southwest Airlines Co. 21,775%, WalMart Stores, Inc. 19,897%, Tyson Foods, Inc. 18,118%, Circuit City Stores, Inc. 16,410%, and Plenum Publishing 15,689%) differentiated themselves from their petitors and the market only through the way they managed their people. – Pfeffer (1994). Competitive Advantage Through People, 1994. 2 Three HR Generations Functional HR departments (transaction, administration, and pliance cost centers who view employees as an overhead cost to be minimized) add value by preventing loss through policy enforcement Secondgeneration HR processes add value by removing barriers to performance (elements of strategic HR in a function that views employees as a leverageable asset) Thirdgeneration (strategic) HR systems (investment and ROI centers who align and improve strategicallyfocused employee performance) have integrated all best practices aligning them as a strategic system. High performance work systems include ?rigorous recruitment and selection procedures, performancecontingent incentive pensation systems, and management development and training activities linked to the needs of the business? (?which in turn, drive profits, growth, and ultimately market value?). – Becker, B., Huselid, M., Pickus, P. Spratt, M. (1997). HR as a Source of Shareholder Value: Research and Remendations. Human Resource Management, Spring 1997, Vol. 36, No. 1, pp. 3947. ( Becker, B., Huselid, M. Ulrich, D. (2023). Making HR a Strategic Asset. Working paper. State University of New York at Buffalo.) 3 What is 3rd Generation HR worth? Initial research on 740 panies? HR practices found that those with the most integrated high performance work systems (HPWS) had economically and statistically significantly higher leve