Here are some ways to measure the payoff of some workforce management programs.
The measures are quite broad for some programs. For example, a reward systems project can pay off in a variety of measures such as improved productivity, enhanced sales and revenues, improved quality, cycle-time reduction or even direct cost savings.
In other programs, the influenced measures are quite narrow. For example, in labor management cooperation programs, the payoff typically comes in reduced grievances, fewer work stoppages and improved employee satisfaction. Orientation programs typically pay off in measures of early turnover (turnover in the first 90 days of employment), initial job performance and productivity.
Absenteeism control/reduction
Absenteeism, customer satisfaction, job satisfaction
Business coaching
Productivity/output, quality, time savings, efficiency, costs, employee satisfaction, customer satisfaction
Career development/career management
Turnover, promotions, recruiting expense, employee satisfaction
Communications
Errors, stress, conflicts, productivity, employee satisfaction
Compensation plans
Costs, productivity, quality, employee satisfaction
Compliance programs
Penalties/fines, charges, settlements, losses
Diversity
Turnover, absenteeism, complaints, charges, settlements, losses
E-learning
Cost savings, productivity improvement, quality improvement, cycle times, error reductions, employee satisfaction
Employee benefits plans
Costs, time savings, employee satisfaction
Employee relations program
Turnover, absenteeism, employee satisfaction, engagement
Gainsharing plans
Production costs, productivity, turnover
Labor-management cooperation programs
Work stoppage, grievances, absenteeism, employee satisfaction
Leadership development
Productivity/output, quality, efficiency, cost/time savings, employee satisfaction, engagement
Marketing and advertising
Sales, market share, customer loyalty, cost of sales, wallet share, customer satisfaction
Meeting planning
Sales, productivity/output, quality, time savings, employee satisfaction, customer satisfaction
Orientation
Early turnover, training time, productivity
Personal productivity/time management
Time savings, productivity, stress reduction, employee satisfaction
Project management
Time savings, quality improvement, budgets
Recruiting source (new)
Costs, yield, early turnover
Retention management
Turnover, engagement, employee satisfaction
Safety incentive plan
Accident frequency rates, accident severity rates, first-aid treatments
Selection tool (new)
Early turnover, training time, productivity
Self-directed teams
Productivity/output, quality, customer satisfaction, turnover, absenteeism, employee satisfaction
Sexual harassment prevention
Complaints, turnover, employee satisfaction
Six Sigma
Defects, rework, response time, cycle time, costs
Skill-based pay
Labor costs, turnover, absenteeism
Strategy/policy
Productivity/output, sales, market share, customer service, quality/service levels, cycle times, cost savings, employee satisfaction
Stress management
Medical costs, turnover, absenteeism, job satisfaction
Technical training (job-related)
Productivity, sales, quality, time, costs, customer service, turnover, absenteeism, employee satisfaction
Technology implementation
Cycle times, error rates, productivity, efficiency, customer satisfaction
Wellness/fitness
Turnover, medical costs, accidents, absenteeism
Source: Excerpted from Investing in Your Company’s Human Capital, by Jack J. Phillips. Copyright 2005 by AMACOM Books.
