Human resources (HR) departments certainly play a very important role in shaping the success of an organisation by implementing various initiatives and programmes that foster employee engagement, improve retention rates and align with overall strategic goals. However, measuring the effectiveness of these HR initiatives is crucial to ensuring that they are driving the organisation forward.
Measuring the success of HR initiatives requires a data-driven approach supported by clear objectives and key performance indicators or KPIs. To begin with, it is crucial to establish specific and measurable objectives that align with the organisation’s overall business strategy and vision. By defining KPIs, HR can systematically track the progress of their initiatives and assess their impact on organisational performance.
Sujiv Nair, global CHRO, Re Sustainability, believes that feedback measurement, analysis and action planning are vital components for the success of any business. ‘What gets measured gets done’, goes the saying, and therefore, organisations must ensure they have a robust system in place to track and evaluate the performance of what they have initiated. The first step involves converting the top five or six organisational goals into specific KPIs, for each business unit or function and then cascading these objectives down the hierarchy to set goals for employees at all levels.
“To gauge employee engagement throughout the year, implementing an employee-engagement calendar with diverse activities, such as literary, sports, cultural and innovation quarters, can be effective”
Sujiv Nair, global CHRO, Re Sustainability
Human resource departments should leverage HR analytics and workforce metrics to collect valuable insights. Employee surveys, performance evaluations, turnover rates and engagement scores are among the essential data points that provide valuable information on the effectiveness of HR programmes.
Additionally, benchmarking HR initiatives against industry standards or best practices offers valuable insights, identifying areas for improvement and facilitating the setting of realistic targets. Ultimately, this data-driven and goal-oriented approach enables HR to continuously refine and enhance their initiatives, contributing to the organisation’s overall success and employee satisfaction.
For instance, according to Rishav Dev, former CHRO, Noveltech Feeds, if the programme primarily focuses on qualitative outcomes, one can gauge its success over time by evaluating the improvements in performance resulting from the training or inputs received. This can be measured in terms of performance changes observed after a specific period.
Another approach he suggests involves conducting surveys or questionnaires to gather feedback from the individuals who underwent the programme or their respective managers. “By seeking their opinions on how well the programme has benefited individuals, we can gain valuable insights into its impact,” he enunciates.
Dev says, “It is essential to align HR initiatives with the overall strategic goals of the organisation to ensure their success measurement is in line with the broader business objectives. To achieve this alignment, the interests and preferences of the individuals involved should be taken into account. While not all HR initiatives directly relate to the business, they can still be valuable if they cater to personal interests or help individuals develop relevant skills for future use, either professionally or personally.”
“To achieve this alignment, the interests and preferences of the individuals involved should be taken into account. “
Rishav Dev, former CHRO, Noveltech Feeds
Nair shares that various methodologies such as the balanced scorecard, set, monitor, and evaluate specific, measurable, achievable, relevant, and time-framed (SMART), realistic, achievable and worthwhile (RAW), wish, outcome, obstacle, and plan (WOOP), heartfelt, animated, required, and difficult (HARD), or measurable, manageable and motivational (MMM) can be employed based on management thinking and the nature of the business. He adds, “Measuring the pulse of employees through engagement surveys or grievance redressal mechanisms is crucial in understanding their sentiments and concerns.”
“Employee development is another critical aspect, with a focus on grooming and promoting internal talent as well as facilitating transfers within the organisation. Collaboration between different business units and functions is fostered through periodic collaboration surveys,” he points out.
“Evaluating the impact of training programmes is essential, and the Kirkpatrick model provides valuable insights for this purpose. To gauge employee engagement throughout the year, implementing an employee-engagement calendar with diverse activities, such as literary, sports, cultural and innovation quarters, can be effective,” opines Nair.
“Measuring the alignment of HR initiatives with an organisation’s goals and future plans is of utmost importance for the success and growth of the company. It is not possible for HR to operate in isolation; it must function as a strategic business partner, closely attuned to the needs and objectives of the organisation,” explains Mukul Chopra, CHRO, ConveGenius.
“Just as marketing teams must understand the demands and preferences of their target audience, HR professionals must have a deep understanding of the business’ requirements,” he observes.
“Measuring the alignment of HR initiatives with an organisation’s goals and future plans is of utmost importance for the success and growth of the company.”
Mukul Chopra, CHRO, ConveGenius
By establishing clear, measurable objectives and defining KPIs, HR can track progress and assess the impact on organisational performance. Leveraging HR analytics and data-driven approaches, such as employee surveys, turnover rates and performance metrics, provides valuable insights into the effectiveness of HR programmes. Collaborative goal setting, continuous communication with senior management and integration with organisational culture further enhance the success of HR initiatives, fostering employee engagement and retention for sustained organisational growth
It is important to align HR initiatives with strategic goals, setting clear objectives and using data-driven approaches, organisations can track the impact of their programmes on employee engagement and retention. Remember that HR success is not just about numbers; it is about creating a supportive work environment that nurtures talent, fosters growth, and drives the organisation towards long-term success.