Workforce Score Card
1-What does it take to
be successful in determining the return on investment (ROI) of HR proposals?
It partially depends
on the expert judgments of HR and line managers. They need to help you develop
the numbers to calculate the probability of success or failure for particular
investments. You can use colleagues, focus groups, or other techniques to
gather feedback on potential cost and benefit categories and ask of help in
generating dollar-value estimates for each of the categories that you have
developed. Some of these data may be available from your HR information system.
You need to make sure you have developed the cost categories before you develop
the cost estimates.
2-Here’s an example of
what I mean. If you ask your top HR person how much they invest in training per
year on a per-employee basis, they could probably derive a number from the
corporate training budget. However, if the firm is very large, there may well
be a substantial quantity of training that is done at other levels, say,
division or business-unit, which investments would not be tracked by corporate
HR. Line managers perform a lot of on-the-job-training that is not tracked by
the corporate or divisional financial accounting statements. Thus, for many
firms, the corporate budget for training and development can understate the
true spending on training, by a lot. Thus, you must frame your question
carefully (e.g., Do we want to know the return on “corporates”
investment in training or the organization-wide investment in training?) before
we begin to collect the actual cost data. Thoughts?
Let’s assume that
senior managers need to adopt a new perspective on the strategic potential of
their compensation and benefits plans.
3-Can your plan
develop, implement, and evaluate compensation policies/programs and pay
structures based upon internal equity and external market conditions that
support the organization’s strategic goals, objectives, and values?
