Business is an important element in a country’s economy. So, in doing so requires support, consideration, and proper preparation. Especially in an era when times are constantly changing and developing, investment is an important thing to safeguard the sustainability of the company in the future. One of the important investments is that companies need to invest in better human and social resource metrics. This can be done through the adoption of environmental, social and governance metrics. This adoption can adapt to the most recent human resource accounting measures.
The importance of investing in human resource metrics
Human resource metrics are measures to determine the value and effectiveness of a human resource strategy. This includes employee productivity levels, employee turnover costs, training and human capital, and so on. Most business leaders understand that investing in these metrics, including upskilling, reskilling, and rehiring employees, especially in industry coalitions and in public-private collaborations, are both cost-effective and have significant medium to long-term dividends. This dividend is not only useful for their company but also for the benefit of the wider community.
Investing in these HR metrics unlocks human potential along with the profitability of the company. This can make the work more meaningful and focused. Thus, it can encourage the growth, achievement and development of talents and achievements of employees.
According to World Economic Forum survey data, companies hope to internally rehire nearly 50% of workers replaced by automation and technology augmentation, as opposed to wider use of automation-based layoffs and worker savings as a core workforce strategy.
Amid accelerated job automation and augmentation, as well as job losses due to the pandemic, businesses need a fast, agile and coherent workforce investment strategy.