Our Summary: while HR is often not sufficiently appreciated, now there is research that shows that companies with strong HR departments have better company performance.
Companies with high performing HR departments, enjoy 3.5 times the revenue growth
by David Woods
Originally Published on August 6, 2012
Companies that are ‘highly skilled’ in core HR practices experience up to 3.5 times the revenue growth and as much as 2.1 times the profit margins of less capable companies, according to new research by The Boston Consulting Group (BCG) and the World Federation of People Management Associations (WFPMA). Continue reading
A recent article published in the Wall Street Journal called Big Incentives Can Hinder, Rather Than Help, which talks about a research coming out of CalTech that showed that positive incentives work up until a certain point, but then performance starts to drop. The suggested explanation is that performance drops due to distraction, which happens due to loss aversion – that is, performance drops due to anxiety introduced by the idea of “If I don’t do well, then I won’t get my reward!”