Watson Wyatt Human Capital Index is a study which is ongoing which quantifies the link that exists between the shareholder value as well as the human-capital practices. It is conducted every two years since 1999 and has four prolonged objective. These include;
- testing the belief that it pays to manage the people’s right;
- to provide the HR with the financial-performance metrics;
- to make a determination as to whether some of the HR practices are able to offer a “bigger bang for the buck” more than others;
- to help the investors in their assessment of the human-capital investment (Wyatt, 2000).
As it has been stated earlier, Watson Wyatt Human Capital Index is important in Human Resource Management because it helps in the provision of the Human Resource facility with the financial performance metrics. This thus enables the organization to keep track of the financial operations and usage. It also enables the HR with the guidance to management of the organization as it measures how beneficial it is for better management of people(Wyatt, 2000).It also assesses the HR practices so as to know which one is beneficial to the organizational management and thus implement it. This can be used to monitor the HR management issues. This is because it carries out surveys that are meant to monitor how HR management is ongoing in an organization.