Measuring Performance and Return On Investment

Every decision a company makes affects the bottom line. After all, the whole point of business is to make a profit. That is why it is so important for companies to keep track of their human resource performance, profits, and return on investment. One of the best ways for companies to determine how well they are achieving their goals is to utilize data analysis programs to collect data metrics,then analyze them for trends and overall performance. There are numerous different analytical tools available to companies that can truly make collecting, analyzing, and understanding the dynamics of the company much easier. So what kinds of metrics should a company be keeping track of to ensure they have the right number of employees with the right training? One metric should be keeping track of total cost of compensation and benefits for all employees. This will help the company know how much they are spending per employee and will later be able to weigh that against performance, training, and other metrics. Another HR metric to keep track of is employee performance. Every employee brings value to a company, and when compared with the cost of employment, employers can maximize productivity and efficiency through proper levels of hiring and employment. A third HR metric companies should focus on is training and development. Every program's cost and added value should be measured to determine which training program provides the desired results. There are countless different metrics that companies can collect and analyze, but these three areas of focus will go a long way to evaluate overall performance, profitability, and return on investment.

Workplace Motivation Theories

There are numerous different workplace motivation theories out there. Portolese (2015) give a brief overview of some of these theories including progression of job withdrawal, the Hawthorne studies, Maslow's hierarchy of needs, Herzberg's two-factor theory, McGregor's X-Y management theory, and the carrot and stick theory. Some of these theories are older than others, while some hold more water and are more applicable in today's workforce.

One theory that I believe is not as effective in the modern workforce is the carrot and stick theory. Portolese (2015) states that managers who use the stick approach use punitive actions when a job is not done satisfactorily, and managers who use the carrot approach use rewards for a job well done (p. 154). Both approaches may yield some short term motivation, but are often ineffective and can have unfavorable results in the long term. This is because the stick approach is seen as negative reinforcement by employees, and the carrot approach offers rewards that may become expected and lose their motivating ability.

One theory that I wholeheartedly believe in and may be more applicable to today's workforce is Herzberg's two-factor theory. Portolese (2015) explains that this theory is based on two types of factors that contribute to employee motivation: hygiene factors and motivation factors. Hygiene factors are more basic needs such as salary, work conditions, company policies, and workplace relationships. Motivation factors are higher level needs such as recognition, achievement, growth, and advancement (p. 153). One study of police officer retention reinforces the application of Herzberg's theory by placing high value on intrinsic factors of job satisfaction and work environments (Monk-Turner, O'Leary, & Sumter, 2010, p. 176). This theory is highly effective in the modern workforce because it addresses the needs of the employee as a way to truly motivate them. Managers need to get to know their employees, understand their needs, and take action on them if the want to increase motivation in the workplace.

References

Monk-Turner, E., O'Leary, D., & Sumter, M. (2010). Factors shaping police retention: Does Herzberg's theory of satisfaction hold. The Police Journal, 83, 164-180. doi:10.1350/pojo.2010.83.0.494

Portolese, L. (2015). Human resource management. Washington, DC: Flat World Knowledge.

My On-boarding Experience

On-boarding is an important process that helps integrate a new employee into the company. Successful on-boarding processes have many different aspects and activities that engage new employees. Bromford, a social enterprise in England, has a comprehensive on-boarding website which includes 12 steps to help acclimate their new employees. The steps are: 1) a welcome message from the CEO; 2) access to online profiles to learn about co-workers and managers; 3) a history of the business; 4) an explanation of the working environment; 5) an introduction to all communication channels used by the company; 6) a detailed explanation of what to expect in the first six months; 7) an explanation of the company's strategy; 8) an overview of the company's operations; 9) an explanation of employee benefits; 10) a detailed handbook of all HR policies and procedures; 11) training and information on safety and well-being; 12) a list of commonly asked questions (Dinnen & Alder, 2017, pp. 105-108). While all of these steps are important to the company's on-boarding process, a few of these steps are critical. First, new employees need to know who they are working with and for. Steps two and four provide this information as well as how to communicate with them. This will drastically improve team dynamics and overall company performance. Additionally, steps six and ten are critical for managing the expectations of new employees.
One on-boarding experience that I had was when I was first hired as a car sales professional at a dealership. This was my first time in this type of job and was a completely new experience for me. During my interview, the hiring manager offer me a position and told me to report to him the following Monday morning. The dealership had just changed ownership and management. When I arrived on Monday, there were several other new hires and we all met with the hiring manager. We immediately began training with the manager and were also provided access to online training. The whole first week consisted of the manager training us on the sales process, and completing the online training program from the auto manufacturer. That Saturday was the first time that we were allowed to interact with customers, and at this point, we were expected to hit the ground running. We had covered just enough training that I was able to close my first sale that day, however there was a lot left to learn. Unfortunately, the dealership's on-boarding process did not continue much more than that. Looking back on this experience, I see now the importance of an extensive on-boarding process. The dealership did not introduce us to key players in other departments, did not provide adequate on-going training, nor did it help shape expectations. This forced a very steep learning curve for new employees and probably contributed to a higher turnover rate. In over five years at that dealership, I worked with over 75 different sales professionals, and that was just the turnover in the sales department. Unfortunately, this is quite common in the automotive industry. As a future manager, I hope to take my experience at the dealership and the knowledge I have gained from this course to implement effective on-boarding practices with new employees.

References

Dinnen, M., & Alder, M. (2017) Exceptional talent: How to attract, acquire and retain the very best employees. New York, NY: Kogan Page Limited.