By Carol Nibley
It has been said that “what gets measured gets managed.” Each organization should have metrics that are meaningful and tracked. For example, do you know the return on investment for your human resources practices such as recruiting and training? How much revenue is generated per full-time employee? What is the true cost of turnover in your organization?
For many companies, employees are their biggest asset and their biggest expense. It’s important to measure the investment of the employer in its human capital activities to ensure the alignment of resources with corporate strategic objectives and continued market success.
Consider the following example: Increased customer complaints have prompted management in an organization to retrain employees on customer service. The company spends hundreds of thousands of dollars on a new training initiative. How will they know if this training is effective? Are there other considerations besides training that need to be part of the solution? These are important questions to address before committing resources to new initiatives. All too often, however, “solutions” are implemented without appropriate data to support them.
Start with one or two metrics that are meaningful to your organization and track these for a few months to identify trends. The Internet has abundant resources that will not only point you to metrics common to your industry but also provide benchmark data against which you can compare your progress.
The commitment to focus efforts on strategic measurements will be rewarded by increased transparency, early identification of trends, and data by which you can measure progress and make decisions.