Customer Reviews

The Human Capital Edge: 21 People Management Practices Your Company Must Implement (Or Avoid) To Maximize Shareholder Value

5 star:		(6)
4 star:		(0)
3 star:		(1)
2 star:		(0)
1 star:		(0)

 

 

This book makes a valuable contribution to the growing body of evidence that human resources practices have a positive influence on business results. It gives solid numbers showing the relationship between 21 human capital practices and market value. It also provides evidence that these practices are a leading indicator of value creation. That's great stuff!

Then things fall apart quickly. The reason is because the authors over-reach by offering their suggestions for implementing the HR practices they identify as creating market value. That scope is simply much too large for a book of this size, resulting in shallow solutions. As an example, the authors show that "linking rewards to performance" is associated with a nine percent higher market value. They then share all of nine pages on how to implement pay-for-performance systems. That's hardly adequate, given there are a multitude of full-length books on that subject alone.

Some vexing findings are given short shrift, like the counterintuitive results that training and 360 degree feedback actually reduce market value. The authors waffle on the findings by suggesting the negative impact can be explained simply because these programs typically are ineffective. That kind of logic doesn't work since executing the other HR practices poorly would also have a negative impact on value creation.

In sum, this book does an excellent job demonstrating the relationship between human capital practices and market value. However, if you need help implementing those practices, you should look elsewhere.

The Human Capital Edge provides both an interesting and thorough perspective on best practices in human resource management, but more importantly, it translates these principles into specific actions that managers can take to maximize shareholder value.

While it confirms many widely held managerial assumptions with rigorous support and analysis - it also pushes the envelope with new ideas that challenge conventional thinking.

I found this book to be both thought provoking and useful, and recommend it to other CEO's who are seeking to increase shareholder value through better management of their human capital.

Kenneth Traub
President and CEO
American Bank Note Holographics, Inc.

The people at Watson Wyatt never stop amazing me. Recently, I purchased a copy of the Gallup Organization's "Follow This Path." Having read it, I was convinced that there was nothing left to say. Wrong. Pfau and Kay have written an amazing book that documents the correlation between Strategic HR practices and Shareholder Value growth. Well done. One reviewer complains that the book isn't comprehensive enough. I'm not sure this is a fair critisism. After all, the book details 21 HR practices and their impact on TSR (Total Shareholder Return). Certainly, one book cannot possibly provide a comprehensive treatment of all 21 HR practices. However, since when has any professional relied upon a single business book in any subject as their sole resource? This is a fantastic book. I strongly recommend that any senior executive (including CEO, COO, and board memebers) pick up a copy. I also recommend "Follow this Path," Gubman's "The Talent Solution," Risher's "Aligning Pay and Results," and Lawler's "Treat People Right." Overall grade: AAA+++

There are many books out there that describe why companies fail and many others that describe different human resource practices to attract and retain talent. What I liked most about this book is that Pfau and Kay provide, using anecdotes as well as statistical data, the bottom-line justification for good management and personnel practices. This book gives one lots of ideas as well as the arguments to convince other decision makers to try them -- and that is the hardest part in some organizations (like mine!)

Having been in human resources for 20 years, I can finally report, with confidence, HR's direct link to the bottom line. Too many executives still think it is "touchy-feely" and this fact-based information proves otherwise.

"The Human Capital Edge" shows the measurable value of implementing solid HR practices! Great stuff!!

This book is the best overview available of the current state of the art in human resource management practices and their relationship to business results. It is one of the few books on this subject that will be appreciated by both the line manager as well as the human resource professional because it is readable, practical and business focused. It connects all the major HR trends in a critical but objective way to questions about their true impact and worth in driving "human capital".
An excellent, comprehensive source that you could give to your CEO!

This work combines solid and proprietary research with practical advice for managers seeking to maximize the value of any company's most valuable asset-its workforce.In an age in which intellectual property has replaced hard assets as the coin of the business realm,the techniques developed by the authors for dealing with human capital issues are an invaluable aid to thouhtful senior managers everywhere.