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Financial Overview for the HR Business Partner: Fundamentals for the HR Professional

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Companies today are under constant pressure to cut costs and gain competitive advantage by using best-practice models to ensure survival. Human resources must prove that the activities it performs are both in line with business objectives and are financially sound. When asked to defend a current total rewards program or redesign an organization's total rewards system, it is important to present and justify these recommendations in definable business terms. HR professionals can be more effective in their positions and more successful in helping their organizations continue to grow profitable by understanding how each senior manager's organization makes money and what is needed to sustain business both in good and bad economic climates.

This book originally published as A Business Primer for HR Professionals , will help HR professionals understand business fundamentals and how total rewards relates to the business' effectiveness in the marketplace. With a focus on the rules under which businesses operate, how business performance is measured and the implications of financial performance on total rewards plans, HR professionals will learn what they need to know to best align HR's strategic priorities with that of the business.

Table of Contents

  1. Understanding the Fundamentals of Business
  2. Financial Performance Measurements
  3. Financial Ratios
  4. Financing the Business
  5. Aligning Total Rewards to Business and Financial Performance
  6. Building a Company of Business People

About the Author: Carol L. Kardas, CCP, SPHR, is a human resources and compensation professional with more than 25 years¿ experience in the field. She is President of KardasLarson LLC, Human Resource Solutions, a human resource consulting firm skilled at aligning HR strategies to achieve business objectives while impacting the company's bottom line. Prior to this, she was the executive vice president of human resources for a large real estate development company. She also worked for nine years as Director of Human Resources and Compensation for CIGNA, a national financial service organization. She has prior HR experience in public accounting, legal firms and manufacturing, health-care and non-profits.

Kardas is a past president for the Human Resource Association of Central Connecticut. She is a member of WorldatWork, from which she earned her Certified Compensation Professional (CCP) designation. She also is a member of the Society for Human Resource Management, from which she earned her Senior Professional in Human Resources (SPHR) designation. She is certified in Advanced Employee Relations Law, Retention Strategies, Career Focus and Development. She is on the adjunct faculty of St. Joseph College, where she teaches the preparatory course for the SPHR/PHR certifications.