Cost Benefit Analysis, Essay Example

Human resources professionals represent an organization and the greater good of its employees. From this perspective, therefore, they must possess knowledge and proficiency in many areas, including an understanding of financial matters. This is essential so that they are able to select new employees that will provide the best possible contribution to the organization as a whole (University of Minnesota, 2012). A cost benefit analysis for a human resources department is relevant because it facilitates a level of strategic growth and development that will promote greater organizational outcomes that are beneficial to employers and stakeholders at all levels (Deloitte). Strategic planning is instrumental in the human resources role, and this must encompass the challenges of doing business and managing financial matters effectively and cohesively at all times (Righeimer). Finally, human resources professionals must consider the role of compensation, recruitment and hiring practices, benefits, and other areas as critical components of a cost-benefit analysis in this role (University of Tennessee, 2013).

Response to Other Postings

Response to Wali Rahman: It is necessary to establish adequate training and guidance in order to achieve financial competency in the HR field, which is not always likely to occur in antiquated structures with fewer resources. Also, some HR professionals might not see the need to understand financial metrics, thereby making it difficult to convince them of its merits. A shift in culture to accompany financial education for HR professionals must be considered as a means of addressing these challenges more effectively.

Response to Christine Oglesbee Miller: It is necessary to consider the role of cost-benefit analyses in a collaborative context to improve upon existing HR functions in a desirable manner. This also enables the HR scorecard that is referenced to be effective in achieving the larger strategic picture that the organization is attempting to offer. However, this is not without its challenges; therefore, knowledge must be shared as a means of exploring the insights necessary to improve strategic HR functions.

References

Deloitte. Creating value through HR: HR Strategy. Retrieved from http://www.deloitte.com/assets/Dcom-Sweden/Local%20Assets/Documents/se_consulting_HR-Strategy_Sweden.pdf

Righeimer, J.P. Aligning human resources & strategic plans. Retrieved from  http://www.maverickec.com/index_files/Aligning%20HR%20Strategy%20epulse.pdf

University of Minnesota (2012). Financial competencies and assessments. Retrieved from http://www1.umn.edu/ohr/trainingservices/financial/competencies/

University of Tennessee (2013). Human resources: Strategic plan. Retrieved from http://humanresources.tennessee.edu/docs/HR_5yr_strategic_pla2.pdf