Effect of Human Resources Best Practices

We are often asked to link Human Resources best practices with outcomes for your business. Here are what studies have found these practices result in:

  • Companies using more high performance employee management practices have 22% better sales growth than low use firms

  • Companies using more high performance employee management practices have 23% better profit growth than low use firms

  • Companies using more high performance employee management practices have 67% lower employee turnover than low use firms.

  • Businesses can increase value by up to 47% by using effective HR practices.

  • The cost to replace an employee ranges from 50% to 200% of that employee’s salary.

Sources: Pfau and Kay, The Human Capital Edge, 2002 and Cornell University —  Research Report #4, 2005.

So the next time someone asks you why you are concerned about human resources best practices, tell them it is the secret to your success!