This section addresses how to measure the impact of people upon organisational results. It helps to direct human capital actions towards those areas that have a real influence on business success or failure. We divide the section into two distinct sub-sections: Financial Impact and Productivity and Value Added Impact. Financial Impact metrics are intended as bottom-line measures of human capital performance. They provide clear indications of comparative bottom-line financial competitiveness. Saratoga analyses revenue, costs and profit, providing a human capital dimension to financial performance. Generic productivity levels are indicated by our metrics, Remuneration/Revenue and Remuneration/Costs. The other important metric that is increasingly demonstrating value to clients is the Human Capital Return on Investment (HC ROI), which measures the value added per unit of pay and is a prime value added indicator – remembering that productivity by itself does not add value unless the goods/services produced are sold profitably in the market place.
The importance of developing and maintaining employees’ positive engagement and commitment is understood to have critical impact upon the organisation’s competitive positioning in the marketplace. In line with this rationale, Saratoga has developed a suite of behavioural metrics which, when brought together, provide clear indication of the level of commitment and engagement of whatever part of the organisational workforce they have chosen to measure. In this section we will analyze absence and turnover from different organizational aspects
This section will present metrics that will review a number of workforce structures, many of which are highly relevant to current performance in other areas. It includes management span of control, percentages of management FTEs, and gender diversity.
Additionally we will analyse the structure of HR function as well as sub processes (Recruitment, L&D, Compensation and Benefits, Payroll, International assignments, Performance Management, Organizational design etc.) Beside HR we will analyse FTEs and costs metrics for other support functions such as Finance, IT, Procurement, Legal, Sales and Marketing.
Recruiting people, both externally and internally, is not difficult; recruiting the right people and keeping them is the key. Successful resourcing secures positive results internally and is a major competitive advantage in the market place. The focus of this section is external resourcing This section is about how well an organization recruits the people it needs and helps to assess the structure and efficiency of resourcing activity in relation to organizational goals.
Compensation and Benefits
Exploring the structure of Compensation and Benefit investments allows an assessment of how remuneration strategy aligns with bottom-line performance. In today’s business environment, all expenditure is critical and employee remuneration is often one of the largest cost items. This section explores the structure of compensation and benefit investments. Saratoga’s use of the word remuneration always relates to the totality of a reward package and includes the combination of compensation (i.e. cash) and benefits (i.e. all other elements of reward). Information in this section assists organisations to assess the strategic outcomes of their compensation and benefits investment.
Learning and Development
The metrics in this section provide an indication of the relative levels of commitment and activity to human capital learning and development amongst organisations across Europe. The quality of learning and development cannot be measured directly by metric measurement. However, when combined with metrics from other sections and/or with qualitative measures where available, a valuable assessment can be made of the effectiveness of learning and development processes.