| McKinsey Classics | May 2018 |
 |
| The HR function’s return on investment |
| What is the return on investment of training? How can a business get the best performance from the best recruits? Until recently, most of the basic questions that HR functions ask had, at best, imprecise answers. But the widespread adoption of enterprise-resource-planning and HR-information systems made data on business operations, performance, and personnel both more accessible and more standardized. |
| Meanwhile, the proliferation of HR-information systems generated a community of software and technology intermediaries that can help executives use advanced analytics to find the links between recruiting and managing talent and using it more productively. Finally, the consolidation and outsourcing of transactional HR work forced many HR functions to start quantifying their costs and performance. Read the 2011 classic “Question for your HR chief: Are we using our ‘people data’ to create value?” to start a dialogue that will help HR executives build a lasting strategic partnership with the senior-management team. |
|
|
|
|
|
|
| Did you miss our previous McKinsey Classics? |
|
| McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. |
|
|
|
|
| Copyright © 2018 | McKinsey & Company, 55 East 52nd Street, New York, New York 10022 |
|
|
|
|
