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Dear Workforce Can You Measure Goodwill

The best approach is to measure outcomes.
February 18, 2001
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Related Topics: HR Services and Administration, Dear Workforce
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QDearWorkforce:

   Forsome time we have been trying to find out how to measure the business benefit ofdoing the soft things like having cultural programs, employee satisfaction surveys and building employee brand. Is there a way to measure the benefitsof employee goodwill?

-Samit, from a software services company headquartered in Bangalore

ADear Samit:

    It is quite possible to measure, as you state, "employee goodwill."

    However, employee goodwill, cultural programs,and other soft types of programs are usually measured by their effectiveness oroutcome on the employee population. For example, most companies measureemployee satisfaction as a gauge of employee happiness.

    This only measures their "mood"; itdoes not measure their effectiveness in the organization or their contributionto the "bottom-line" of the company. A better measure might beemployee commitment, which measures the amount of discretionary time an employeewould spend to support the company in achieving the business objectives.

    In other words, the best approach is to measureoutcomes and to be thoughtful about which "soft" programs you put inplace. Always ask, "What is the purpose of this program, and how will itimpact the bottom line?"

    Keep your eye on your WorkforceWeek e-mail newsletter - there will be more about this in the comingweeks and months.

SOURCE:David Sholkoff, Human Capital Advisory Services, Deloitte & Touche, December7, 2000.

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