Top Employers chief executive David Plink
Better business
performance, as measured by higher stock prices, faster revenue growth and a more
favourable perception of companies’ employer brand, is correlated both with
company-wide certification of HR best practices and with the employment of a
proportion of HR-certified professionals, according to new research conducted
by Top Employers Institute and HR Certification Institute® (HRCI®).
“Certification
of HR best practices applied by employers as well as HRCI certification of HR
professionals correlates with improved business results and companies’ employer
brand perception,†says Top Employers Institute chief executive David Plink.
“Our findings build on previous research to deliver the clear message that
exceptional human resource management — from applying HR best practices to the
competencies of the HR professionals who design and implement them — can
demonstrably and positively contribute to the bottom line.â€
More
specifically, the joint research conducted this year by Top Employers Institute,
an independent global organisation that certifies excellence in HR practices
and the environment employers have in place for employees to advance their
development, and HR Certification Institute, the leading professional
credentialing organisation for HR professionals worldwide, found:
·
Stock
prices during 2011-2015 of companies certified by Top Employers outperformed
the stock indices in their respective countries by an average of 51% over the
same five-year period.
·
Compounded
revenue growth rates of companies certified by Top Employers outperformed
relevant industry average compounded growth rates by 14% when comparing
2010-2014 revenues.
·
Stock
prices of companies with more than five HRCI-certified professionals have
increased by an average of 95% during 2011-2015, while the relevant indices
(NYSE, NASDAQ) increased by an average of 38% over the same five-year period.
Therefore, companies with more than five HRCI certificate holders outperformed
relevant stock indices by 57% over the five-year period.
·
Compounded
revenue growth rates of companies with more than five HRCI-certified
professionals increased 33% during 2010-2014, while the compounded revenue
growth rate of relevant industries increased 8% over the same period.
Therefore, companies with more than five HRCI certificate holders outperformed
relevant industry average compounded growth rates by 25% over the five-year
period.
“HRCI
certification correlates both with better results for the individual certified
HR professional, as we previously demonstrated through our 2015 large-scale
value of certification study, and also for the companies that employ them, as
these new findings suggest,†said HR Certification Institute chief executive
Amy Dufrane.
“HRCI
certification helps companies identify individuals who have expert knowledge of
HR best practices as well as the strategic mind-set, situational awareness, and
sound judgment required to adapt those best practices to their company’s unique
needs.â€
Positive
correlation between employer brand perception and both certification of
companies by Top Employers and companies employing more than five
HRCI-certified professionals were found as follows:
·
The
average rating for Top Employers certified companies on Kununu is 3.5 stars
(out of five) versus the overall Kununu average of 3.1. The average rating for
Top Employers certified companies rated on Glassdoor is 3.5 stars (out of five)
versus the overall Glassdoor average of 3.2.
·
The
average rating on Glassdoor for companies with more than five HRCI certificants
is 3.5 stars (out of five) versus the overall Glassdoor average of 3.2.
These findings,
as compiled by independent international data analysts, are part of the
research paper Emerging Evidence: Business Performance and the Validation of HR
Best Practices published by Top Employers Institute and HRCI. To download a full
copy visit http://www.hr-insights.top-employers.com/emerging-evidence
The paper
examines the strong precedent for best practices in general and how best
practices benefit companies, and then looks at how the uptake of best practices
in the more subjective realm of human resources management has faced challenges
versus the application of best practices in more process-driven or “scientificâ€
organisational functions.
“There is
widespread agreement that people are an organisation’s most valuable asset,â€
says Plink. “But what has been missing is a way to more systematically manage
and optimise the effectiveness of that asset. With rigorous validation of HR
practices at the company-wide and individual HR professional level, which
comprise a systematic way to apply, evaluate, adapt and measure the impact of
HR best practices, we are showing a way forward.â€
The paper
concludes that HR best practices, like best practices in general, can have the
most impact on business performance when they are embraced company-wide,
starting at the top, and adapted smartly and sensitively by expert
professionals.
About Top
Employers Institute
Top Employers
Institute, headquartered in the Netherlands and founded in 1991, is an
independent organisation that certifies excellence in HR practices and the
environment employers have in place for employees to advance their development.
For 25 years, Top Employers Institute has certified exceptional employers
around the world with its annual Top Employers Global, Top Employers
Continental, and Top Employers Country certifications.
In 2016 alone,
Top Employers Institute has certified more than 1 100 companies in 100
countries. Top Employers opened its Americas headquarters in Alexandria, VA in
2016. In 2015, Top Employers entered into a strategic global partnership with
US-based HR Certification Institute, the premier credentialing organisation for
HR professionals worldwide to expand the global reach of both organisations in
a shared mission to raise the level of excellence of the worldwide human
resource management profession.
About HRCI
HR
Certification Institute (HRCI) is the premier professional credentialing
organisation for the worldwide human resources profession. Founded in 1976 and
headquartered in the US, HRCI is celebrating 40 years of setting the standard
for HR mastery and excellence around the globe. An independent non-profit
organization, HRCI is dedicated to advancing the HR profession through
developing and administering best-in-class certifications including the
NCCA-accredited Professional in Human Resources® (PHR®) and Senior Professional
in Human Resources® (SPHR®).
All of HRCI’s
credentials are recognised as the most rigorous, meaningful, and grounded
professional certifications demonstrating competency, real-world practical
skills and knowledge in the field. Together with HRCI-certified professionals
in 100 countries around the globe, HRCI ensures, strengthens and advances the
strategic value and impact of HR.
