How can you fully realize the benefits of being able to measure your organization’s value?
A recent article from Kyle Lagunas, an HR market analyst for Software Advice.com,
www.softwareadvice.com/hr, notes how businesses are currently looking for
ways to increase output while keeping the costs low. This idea is called HR metrics. A great place to start when considering how to maximize return on investment (ROI) begins with the hiring process.
Onboarding new workers requires time and money. Making sure the employee will have the tools necessary to succeed from day one will increase productivity and engagement levels. Good training will lead to long-term success, bad training can lead to short-term placements, cost inefficiencies and high employee turnover. What is the most efficient way to onboard new employees while increasing ROI? Certain metrics can help determine the efficiency of this process within your organization. Some aspects are easy to measure and others are more difficult, such as the cultural fit of employees who quit.
First on the list is to establish a baseline for measuring your organization’s onboarding process’s ROI. A few key concepts to keep in mind when establishing your baseline to measure ROI follow:
– Onboarding should be consistent.
– The onboarding process is just that: a process.
– The onboarding process is a lot like dating.
After you’ve figured out the initial information you need, it’s time to think about how to use that information and how to measure it. Three important areas that can help you to begin to classify the information are performance, experience and effectiveness.
For the best results and maximum ROI, develop a strategy that makes next year the best year yet, not just on par with last year. When measuring the efficiency of your new-hire, note when they can begin to make key contributions to the organization. Make note of advancements in employee performance, time to proficiency and increased retention levels. After this step, the next question is how you can maximize the value of a better onboarded worker.
Many organizations leverage the tools and technologies found in talent management systems to better manage the process of engaging and motivating their employees. Beyond core talent management functionality, these systems also offer reporting analytics and dashboard elements that provide the information you need to support your ROI analysis.
In any case, the best tactics for one organization won’t always be the same in another. Each is an individual, unique set of metrics. Clear communication between HR departments and leadership staff to determine the end-result goal for your organization is the starting point. To read more about how to maximize your organization’s onboarding ROI, click here to read the full article.