Posted in:Performance Management
Now that 2020 is underway, business owners are looking forward to a better year. All business owners would, of course, say they are aiming to have a strong and successful 2020 – but have you outlined exactly what counts as “success” from a human resources perspective?
A company’s employees play a pivotal role in its success, and metrics related to human resources can provide insight into how well the company is doing from several perspectives.
Employee satisfaction can be measured in a variety of ways. Employee Satisfaction Surveys are one tool that enables employers to gain a better sense of internal employee sentiments related to satisfaction and engagement. It can serve as a way to gather feedback on current work processes, changes, and areas that need more rigor. It is similar to a stay interview in the sense that it allows management to gather information that can guide improvements in the workplace. These information gathering tools are a good way to check-in with existing employees, rather than waiting for unfortunate situations where critical talent decides to resign and you are conducting an exit interview. Taking proactive action is much preferred to reactive action, because timing can make all the difference.
As you conduct these information gathering exercises, it is important to follow-through and act upon the findings. Otherwise, you risk the possibility of losing credibility amongst employees. Further, another word of caution must be made that satisfaction is different than engagement. The higher your employee engagement levels, the more likely your business will be successful because you have people who align with your vision and a strong commitment to contribute beyond their job description to succeed together. Hence, you should also focus upon maintaining your company culture long term.
In addition to qualitative research methods, it is also advisable to look at quantitative HR measures. Some of the most common ones include turnover rates and retention rates. The idea of team is very important, so a greater focus on team cohesion and collaboration can lead to positive results. Mainly, your workforce will perform better if they have the ability to form deep connections and a strong understanding of each other’s skillsets. It also leads to more happier and productive employees who demonstrate a greater level of commitment. Oftentimes, these employees are also a great source of innovation because they operate from a mindset of possibility.
If you notice your turnover rates increasing, there are many ways to impact those numbers to incentivize employees to stay. You just need to be careful about being overly successful, because you don’t want to encourage under-performing employees to stay since that will hurt your overall business performance. One way to reward an employee for their contributions is through service awards that celebrate their work anniversaries at specific milestones (e.g., 1 year, 5 year, etc.).
Additionally, companies often look at metrics such as profit, production levels, and number of loss-time days to define success. Success in these areas benefits the company as a whole, but can also provide benefits to employees. In some organizations, employees share directly in growing profits via a profit-sharing bonus program. Rewards programs like these help employees to feel directly invested in their company’s success. Other companies offer rewards if production reaches certain target levels, providing incentives for employees to reach those targets. Finally, while the benefits of avoiding loss-time incidents is clear, an additional benefit that many be overlooked is that fewer WCB claims can result in lower premiums. Plus, it is always nice to know that your team makes it home safely at the end of each workday.
Measuring and evaluating these company performance indicators can also provide the leadership team with valuable information about their overall health of the business. If management is very diligent, they may also be able to identify problems early to resolve them sooner rather than letting them fester into chaos. Awareness is just the first step, followed by proper planning and action to make visions of success a reality.
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