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Blog > How to Measure the Human Aspect of Your Organization

How to Measure the Human Aspect of Your Organization

Humans are the most important aspect of your organization. Do you value human metrics the same way you do a budget or schedule?
Human Aspects at Your Organization

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Has the Great Resignation recently impacted your organization’s turnover? If so, you may need to take a deep look into your company to evaluate your employees’ performance and satisfaction.

After all, humans are the most important aspect of your organization, so it’s important to treat human metrics of performance and satisfaction the same way you do a budget or schedule. Measuring people is often a trickier endeavor to do quantitatively versus qualitatively. Management shouldn’t rely on the qualitative feeling that teams and individual employees are performing well; they need to develop quantitative performance metrics in this area too.

Organizations can examine these metrics at the organization or team level (i.e., the macro level) and then again at the individual level (i.e., the micro level). Although most organizations initially struggle to measure human resources, getting a pulse on these metrics is vital for the overall well-being of your organization.

Macro Level

1. Employee Turnover

Turnover is the Number of Employee Exits/Average Number of Employees Over a Period of Time.

It is vital to know the rate of employee turnover at your organization, as well as the elements you can change to reduce your turnover. The average annual turnover rate in the U.S. is about 20%, though it has increased significantly due to the Great Resignation. Do some digging into your specific industry and department for further data on turnover rates.

It’s crucial to reduce your employee turnover to save on onboarding overhead and talent acquisition costs. High turnover is usually a result of poor compensation, burnout, little growth opportunity, or bad management. Treat your employee turnover rate as a vital metric of the health of your organization and take this metric seriously.

2. Employee Satisfaction

You may choose to measure employee satisfaction qualitatively via surveys, etc., but it is also important to quantify this measurement so that you can understand if you are making progress in this area.

In today’s professional climate, employee satisfaction is a major factor in retaining top talent, and satisfaction doesn’t just have to do with pay. In fact, according to Bloomberg, toxic workplace cultures have been a bigger driver of employee turnover during the Great Resignation than compensation. According to this set of data, 69% of employees said they would be more inclined to work harder at work if they felt more appreciated. Culture, in other words, is crucial for the success of your organization.

Humans are your most valuable resource at your organization, so treat them as such. Understanding quantifiable data about employee satisfaction at your firm helps you create an actionable solution to improve it.

3. Internal Promotions vs. External Hires

Recruiting new employees takes up more resources than training current employees, so this metric helps you understand how efficiently you are using company resources as well as the quality of talent you are attracting and retaining. By setting a goal for this metric and performing a GAP analysis to discover how close you are to meeting your goal of high-quality talent, you can improve the health of your organization.

It is vital that your company has strong leaders in every department. Since many organizations struggle to attract good leadership, training internal leaders is the best alternative. Your internal promotion rate helps you understand the long-term diagnosis for your company’s leadership.

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Individual Level

1. Performance Review Scoring Matrix

This metric measures employees based on their technical and soft skills. An employee’s technical skills are contingent on the nature of their role in a company and can include things such as technological literacy (for example, Excel proficiency) or math proficiency (if an employee is in finance).

An employee’s soft skills may include emotional intelligence, communication, teamwork, etc. Employers can develop scores for each of these categories, and then weigh each category according to its importance to the organization. The review process allows employers to examine a combination of qualitative and quantitative measurements of employee value.

Make sure your employees are aware of their metrics as well, and that you have devised and implemented a plan to help them improve their performance. By providing them with a plan for improvement, you can help them understand their value in the organization and take ownership of their position.

2. 360 Degree Reviews

This is similar to the performance review; however, this review is done by the individual’s peers, subordinates, and supervisors.

Although open-ended feedback in reviews is important, there should be a quantitative element to these reviews as well. Creating a competency scoring curriculum for your employees can help keep your team on track with skills growth.

When evaluating an employee’s performance through competency scoring, you should establish a timeline for skills development. Establish transparency in your relationship by maintaining employee track records and a projected timeline of their growth. Based on this transparency, employees should understand how you would evaluate and score a seasoned person in their position.

3. Interview Scoring Matrix

This metric is very similar to the Performance Review Scoring Matrix. It measures both technical and soft skills. The difference is that it is based on different data. The Interview Scoring Matrix is based on a candidate’s resume, interviews, references, assessments, etc., whereas the Performance Review is based on the experience of an employee’s managers.

This information helps organizations recruit employees and weigh candidates for positions within a business. To use the Interview Scoring Matrix, you need to clearly define your desired metrics for a position. Make sure multiple people within your organization examine this data when making decisions around the Interview Scoring Matrix.

The Bottom Line

Although most organizations initially struggle to measure human resources, getting a pulse on these metrics is vital for the overall well-being of your organization.

As a leader, you should prioritize taking care of this vital resource in your organization. In the wake of the Great Resignation, many employers are realizing that they have failed to care for their employees. Take this opportunity to run diagnostics on your organization to catch any issues before they become too big to handle.

For more tips on optimizing the team in your organization, be sure you’ve downloaded and read The 10 Step Arootah Success Formula.

What metrics are you using to measure employees at your organization? Let us know in the comments!




Disclaimer: This article is for general informational purposes only and is not intended to be and should not be taken as professional medical, psychological, legal, investment, financial, accounting, or tax advice. Arootah does not warrant or guarantee the accuracy, reliability, completeness, or suitability of its content for a particular purpose. Please do not act or refrain from acting based on anything you read in our newsletter, blog or anywhere else on our website.

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