Linking People Data with Financial Kpis

Abstract Book of the 7th International Conference on Research in Human Resource Management

Year: 2025

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Linking People Data with Financial Kpis

Ayush Trivedi, Jensy Aya, Dhruvi Agrawal, Ishika Mahajan

ABSTRACT:

This study examines the relationship between Human Resource Management (HRM) practices
and the financial performance of organizations through a quantitative, meta-analytic approach.
Data were compiled from multiple empirical studies and secondary financial datasets to assess
how HRM dimensions—such as employee engagement, training and development, and
performance appraisal—affect financial indicators including return on assets, profitability, and
productivity. Using correlation and regression analyses, followed by meta-analytic techniques,
the study identified a statistically significant but modest positive association between HRM
practices and financial performance (pooled effect size: r = 0.038, p = 0.013). The forest plot
illustrated consistent directional effects across studies, while the funnel plot and Egger’s test
indicated minimal publication bias. Findings suggest that strategic HRM investment
contributes to financial sustainability and competitive advantage, although contextual factors
like industry type and firm size moderate this relationship. The paper concludes that
organizations adopting integrated HRM systems are more likely to realize long-term financial
gains, highlighting the need for continuous HR–Finance alignment in decision-making.

Keywords: Human Resource Management, Financial Performance, Meta-Analysis, Regression Analysis, Publication Bias, Organizational Effectiveness