The New Human-Capital Metrics

The focus of HR organizations is changing --- fast.

"The human-resources department is in survival mode. As outsourcing the function becomes a more-prevalent option for companies, HR managers know that if they are going to endure, they have to deliver strategic value, and that value has to be measurable."

"If your goal is to increase your company's people productivity through the effective use of human-resources tools and strategies, it's time to change the DNA of human resources," says John Sullivan, professor of management at San Francisco State University. "It's time to change human resources so that it focuses on top performers and ensures that it spends most of its time and budget on high-ROI activities." After all, he adds, "the only soft area left in a company is the largest expense item: people."