Developing the human capital balance sheet

For nearly four decades, human resource professionals have continued to perpetuate and exacerbate the perception that HR provides no true bottom-line results to an organization. As they continue to become embroiled in mounds of administrivia, their peers still describe them as organizational overhead, administration, paper-pushers, personnel managers: partof the unforsaken line on the balance sheet called G&A (general and administrative).

The root of the bad reputation? One very important mistake. A lot of HR leaders are not business professionals. They do not run their functions based on a balance sheet. Many of them don’t have the background to even understand what a balance sheet is. Human resource leadership must model new behavior. They need to begin that process by becoming an integral and respected part of the senior management team of the organization.

Read more about how to run the HR function as a profitable business unit.