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HR Productivity measurement increases the competitive advantage

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The HR department can contribute to the successful overcome of the recession more it can feel its contribution in the beginning. The HR has to move from the social help department to the department managing the productivity of the human capital in the organization.

The productivity increase is an important component in the fight with the recession. The organization has to keep the cost decreasing as it cannot be sure about the growth of the sales revenues and it has to keep the prices of the products and services competitive enough. The costs are the key to the success in the beginning of the recession and in the beginning of the new growth era.

The HR has to become the part of the task force to keep the productivity growing in the organization as the organization can successfully compete with the competitors and it can increase its market share on the shrinking market and it can keep its revenues and margins.

The productivity has to be increased carefully and the task force has to select the initiatives, which will bring innovative services and products and the processes, which can be avoided as the company keeps the productivity growing.

The increase of the productivity is not about the decrease of FTEs, it is about smart usage of the potential of the employees, accelerating the innovative effort and explaining the most important aspects to stay successful and become even better.

The HR has many tools to become the part of the task force focusing on the measurement of the productivity of the organization. It has data about employees, their salaries and the benefits provided to them. The HR can play in many models about the costs development and simulating the impact of many decisions on the business of the organization. Go for it, HR.

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Written by Luke

January 31st, 2010 at 9:10 pm

Posted in Performance Management

Tagged with FTE, productivity

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