As a student of the HR profession, I’m currently reading Ulrich and Brockbank’s book “The HR Value Proposition” and am gaining a lot of very useful and valuable information from it. As I stated in this post, I am going to explore how HR can add value to strategic business decisions that the CEO and Exec team can use when planning.
My first post will be the introduction of a series on how HR can add value to the company’s investors. Since I am also involved in Investor Relations, this topic was very interesting to me so I want to start and spend some time exploring it since it blends both my responsibilities.
Investors mostly care about the price of the stock since it represents how the marketplace values the current and future value of the company.
Ulrich and Brockbank list six actions that HR must do in order to show they can have a direct affect on shareholder value:
- Become investor literate
- Understand the importance of intangibles
- Support HR practices that build intangible value
- Highlight the importance of intangible value to total shareholder return
- Design and deliver intangibles audits
- Align HR practices and investors’ requirements
Future posts will explore each one of these actions.