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How do business leaders measure how much they value their HR function?

How do business leaders measure how much they value their HR function? There are hard numbers for outputs like retention, absence, engagement, cost of recruitment, etc. But they’re answering a different question – and those outcomes aren’t fully under the control of HR.

Let’s imagine one of your Directors goes into a Board meeting and says ‘they’ve outsourced HR at a company I know and saved loads. We should consider that here.’

What would your Board say, and why? What evidence would they draw on when responding, in that moment?

I just don’t think it would be based on the hard metrics – do you?

HR would want them to laugh at the suggestion, and say there’s no way they could manage without their HRBP or HR Manager: that no outsourced function could achieve the same level of understanding, be such a built-in member of their management team: add such value: help them build the future.

It’s the relationship that matters – between HR and the business. That’s the channel through which good HR advice, services and partnership is delivered, and how an inspiring people agenda can be developed.

We researched this and worked out how to measure it.

How would senior leaders decide in your organisation how much they value HR?

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