How can HR professionals calculate the return on investment for their companies?
The key concepts are: First, future projections, which are always the toughest to get. Then remember that everything needs to be computed in terms of cash flows. Estimates are OK and even necessary. Try to be honest with yourself in these estimates. Once you have all of your estimates done and in cash, the math is pretty easy. In light of the economic downturn, what is especially important for HR professionals to understand in terms of their companies’ financial aspects? Learn about the balance sheet and cash flow statement. As we go forward, understanding those statements as well as the income statement will be critical. How can learning about finances make HR professionals better leaders for their teams? All business is measured by the numbers. If you can’t understand the numbers in the business, you do not know how the game is scored. As an HR professional, at some point in your career you will be limited by your ability to understand finance. The higher up you move in an organizati
