A Comparison of Financial Performance of Listed Great Place to Work Organizations against Industry Average
Keywords:
HR practices, Financial Performance, HR Analytics, Strategic HRMAbstract
Is HR merely a bundle of abstract thoughts that makes sense in theory but in practice there are few takers for it? The bottom line of any business is profit and a positive impact on the financial performance of the organization. Thus, for HR to be relevant in present times it has to show concrete evidence in terms of positive impact on financial performance of organizations. The present study has explored the impact of industry best HR practices (in terms of top 100 Great Place to Work organizations) on their financial performance. It was found that great place to work for companies average outperform the industry average by 29% in case of PBITDM, 119% in case of ATPM & 73% in case of RONW. The statistical significance of difference was measured through independent sample t-test & it was found that except in the case of PBITDM, all other differences were statistically significant at 5% level of significance. It is expected that the present study will shed new light on the relevance of strategic HRM & HR analytics in organizations.
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