Paper Title
Making the Human Resources Function a Profit Center: is it Real?

Abstract
During difficult times in the economy especially during the past few years, nothing has been more important to top executives than knowing the true value of a particular project or program regardless of their nature. Executives now more than ever are under pressure to demonstrate the business value of the business in general and the Human Resourcesfunction in particular. Some experts in the field of HR strongly believe that this department is a financial burden on their companies andhave decided to shut them down completely and to successfully outsource the function or reduced it to a minimum. The reason they have done it is because they believe that it is costing them substantial budgets every year without impacting positively on the bottom line and profit of the companies. Executives have been demanding that not just the entire HR department should show its value but even any new HR project or program must show its value even before it is implemented including the impact and return on investment (ROI) since measuring the ROI on the HR function is considered one of the most convincing ways to earn the respect and support of the top management’s team. HR executives are looking at the ROI methodology process as a way to show credible values, including financial ROI on the whole HR function. Basically, they ask,“Show me the Money”. This paper will shed some light on this new approach describing the ROI methodology, a measurement process developed and how it can impact the bottom line of companies. The paper describes why and how it is being used to show the contribution of HR programs, improve programs so that they add more value, build support for HR, enhance commitments, and harden important business relationships.