Measuring the Financial and Strategic Value of HR Initiatives in Maverick

Maverick Energy Services markets and deals out with produced water treatment, oil and gas fabrication systems. The company supplies oil in water analyzers, drinking water, gas floatation, sea water injection-reinjection systems and, nutshell and carbon filters. It also offers systems for sulfate removal and cartridge filters among other systems. It was founded back in the year 2005 and I located in Houston Texas. The organization is geared towards achieving its goals through incorporating the human resource initiatives. The aim of this paper is to determine measures that can be used to assess the financial and strategic value of HR initiatives in Maverick Energy Services.  Some of the human resource initiatives in the organization include the following:

Race to HR cloud technology –the organization is among the numerous companies that have opened floodgates for enhancing HR technology. The financial value of HR budget is cyclical and it is the appropriate time to target the finance for supreme impact in the welfare of the organization (Becker, Huselid, & Ulrich, 2013). Companies that do not intend to evaluate and establish a cloud-based human capital management ideology should focus on relatively smaller investments.

The second initiative at Maverick Energy Services is to stake gracefully through data security. Data concerning the employees should be private and ought to be protected from third parties and unwarranted individuals. Data security enhances compliance and HR organizations should be in a position to establish processes that make it possible to eliminate employee data if requested to do so and inform about issues of the data breach within a stipulated time frame. This initiative motivates an organization to keep an eye on erratic decision making because unmanaged risks will result in leaders freezing the access to stored data or even interrupt HR resolutions.

Thirdly, dive in automation where HR operations are focused to utilize updated performance enhancements that will make it possible to embrace automation using the modest catboats and robotic process automation (Becker, Huselid, & Ulrich, 2012). Some companies have a challenge in formulating a natural entry point for Robotic Process Automation because it is demanding to synchronize and control recurrent activities. HR has to evaluate a way to encircle computerization by choosing an internal process and then magnifying it to additional progression pan-points. 

Formulate HR Service delivery as the team sport. Players are aware of their positions in any pronounced team and they empower on their specified talents. It’s time for HR leaders to illuminate and redefine Human Resource positions, improve organizational responsibilities and the HR Functioning model.

Advance to distance training from a technology sprint. The organization should consider the application of maintenance backing resources and expertise. Review the business rules and configurations for ideal presentation and engineer adoption with embattled change –management energies. Pick up the pace in reporting and analytics. The process of deploying cloud tools with the help of a good user makes it possible to replace old-fashioned reports. The process of self-self-service adoption necessitates a more concrete way to access statistics and define what it means.

Appropriately appreciating human capital begins with comprehending how to a degree and quantify the impact of HR initiatives towards the accomplishment of organization’s goals. When establishments empower, enhance and encourage human capital, the end outcome is value-added accounting returns and stockholder value. Managing HR initiatives effectively calls for newfangled outlooks and new aptitudes on the side of both line supervisors and human resource authorities. The following principles and measures can help in measuring or assessing the financial and strategic key HR initiatives in Maverick Energy Services so that HR can be controlled as a strategic asset.

a. Emphasize on the strategic impact of human capital

 Human Capital is an imagined conception. Managers and administrators are not used to reasoning in standings of human assets. This is for the reason that accounting structures make it more comprehensive to get the most out of investments in expertise and other intangibles (Rucci, Kirn, & Quinn, 2015).  To assess the financial value of HR initiatives, the company has to determine what questions it intends to answer. Where the company strives to flush out expenses and the HR utility is obligated to validate its enactment based on efficiency, it may effort on the cost of human capital. The company can evaluate the stock of human capital by comparing it against an anticipated benchmark. This approach may take into consideration procedures such as leadership competency levels, hours of training offered to the employees per year and other measures formulated to determine the level of human capital at Mavericks. This measure will ensure the financial value correspond to the aims and objectives of the firm in the short and long run.  

b. Take heed of Human Capital Pseudoscience

The company cannot initiate diverse measures and expect to abruptly identify the secret value where workforces are deemed to be a cost that should be decreased and the HR role is engrossed on managerial connections and efficiency (Rucci, Kirn, & Quinn, 2015). To manage Human Capital and other HR initiatives as a strategic asset, the organization can consider steps such as the right outlook, the right HR system, and the accurate performance appraisal system. The managers should view HR as rather more than administrative directly above and drive the business upshots that have more key Human Capital element. HR professionals should develop an HR system through hiring, development, and rewards. A successful HR system will allow the company to gain full potential of employees driving up productivity and revenue depicting the huge strategic value of the department. 

c. Need to measure both HR initiatives levels and relationships

Human Capital has value because it engineers business results. Through the Balanced Scorecard terms, human capital is a prominent pointer. It influences financials indirectly through the effect on the approach drivers in the company (Becker, Huselid, & Ulrich, 2012). This kind of ancillary stands a very big challenge for evaluating human investment performance. The Company has to focus more on several intensities of Human Capital. The managers have to also emphasize on the correlation between human capital and the drivers of big screen monetary enactment. The organization should also develop an extremely strong calculated rationality networking human capital, financial performance and customer service. Relationships provide a correlation between HR initiatives and the outcomes including excellence in service delivery and revenue generation allowing the company to measure initiatives’ strategic and financial value.

d. Do not start with the measure- the company should first determine the measurement process before establishing the individual measures.

The measures of human capital enactment should be completely exclusive to the firm as it is with the other essentials of the strategy implementation measures in the firm (Rucci, Kirn, & Quinn, 2015). Maverick Energy Services contests in an industry where hard resources are deliberated to be the standard spring of competitive advantage and individuals metrics tend to be proficiency slanted towards or attitudinal employees appraisals. The principal revenue driver is principally prejudiced by customer satisfaction. Determining a measurement process that considers the contribution of HR initiatives to competitive advantage of the firm will allow an understanding of its financial and strategic value.

e. Contemplate in terms of the Human capital structural design

Assessing the financial value of HR initiatives is a big challenge because there are concerns on what it is primarily, who ought to have the role of running the significant asset and how it should be accomplished. It is essential to reason in relations to architecture since the conception and supervision of human capital as well as the evaluation of human capital performance is by requirement an interrelated progression. Implementing the perception of the human monetary architecture has numerous benefits. It allows the organization to critically categorize the most significant measures of the HR function’s planned performance. It offers a guideline for building decisions for managing and controlling the HR system as a strategy driver. It also accentuates the importance of HR deliverables as procedures of human capital performance by setting up their connection to strategic drivers.

f. An architectural perspective highpoint human capital as a structural asset and enables a collective accountability for human capital organization amid the line managers and HR professionals.

 For a company to be successful in all dimensions, it should incorporate all the departments in an organization and access the financial value of each activity (Becker, Huselid, & Ulrich, 2012). The members of the organization in due course decide the efficacy of strategic expansion, execution, and consequent competitive achievement. A strategic methodology that is affiliated with HR certifies that the organization’s workforces, skills, and capabilities largely subsidize the success of an organization and achievement of its goals.

Conclusion

In conclusion,the principle of HR is tactical and when appropriately allied, it can lead to effective strategy and monetary benefits for a company.  Human capital performance is not an instantaneous necessity for most organizations and at the equivalent time a very big test. It necessitates innovative viewpoints on the role of human capital and new-fangled proficiencies for both HR initiatives and professional directors in the organization. The ability of the organizations to counter these challenges grants them a more competitive advantage. Maverick Energy Services should adopt these measures in evaluating the financial and strategic value of key HR Initiatives.  Mastering the principles and measures to evaluate human capital performance is important because most of the organizations are in the process of performance management evolution. Generally, there is an aggregate prominence on assessing and handling intangibles.

References

Becker, B. E., Huselid, M. A., & Ulrich, D. (2012). The HR scorecard: Linking people, strategy, and performance. Harvard Business Press.

Becker, B. E., Huselid, M. A., & Ulrich, D. (2013). Six key principles for measuring human capital performance in your organization. Business and Society Review, 1, 71-75.

Rucci, A. J., Kirn, S. P., & Quinn, R. T. (2015). The employee-customer-profit chain at Sears. Harvard Business Review, 76, 82-98.