The Great HR Measuring Sticks

Another HR related post ... and worse yet ...

This is another journal entry from 30,000 feet so you have been forewarned.  I’m building a bit of a reputation for thin air, deep thought journaling – Jack Handy style – so if you’re not up for that then stop reading right here. 

Is there a true business partnership between your HR team and the operating business it supports?  And how can you be assured as a leader that you are delivering real value to supporting business growth, vitality and profitability?  Two possible means by which many try to answer this question – survey junkies or metrics gurus.  Which does your company use, or does it use both? 

As a leader of an HR team myself, are these really our only choices for examining the real value and impact our teams are having?  Have we been diminished to an employee engagement score, balanced scorecard, or net revenue per FTE?  Please …

I’m going to offer a different alternative, one that challenges conventional business wisdom.  Perhaps we can’t measure value as a number or via a formula.  Maybe we embrace the uniquely human side of our function and not cram it into the traditional metrics of inanimate objects such as inventory, money, widgets, assets and the like.  

Maybe we answer the question of “is HR different?” with a resounding YES!

I’m thinking about the many ways we can derive value as a supporting function to our business peers and believe more strongly than I ever have that no one number or group of numbers (like balanced scorecard) can adequately capture the intangible value that a great HR team and function can deliver.  Now I’m certain that this premise will be challenged by the two aforementioned groups I referenced above – metrics gurus and survey junkies.  But let’s face it, they are simply defending their trade and understandably will continue to schlep their “solutions” as all encompassing.  Sorry, I’m not buying.

Here’s a small sampling of value deriving HR activities that metrics and surveys just don’t capture:

·       A disenchanted and misplaced employee who leaves the organization because HR challenged the supervisor about the disconnect and then carefully scripted a candid discussion between supervisor and employee that averted an employee claim and freed the employee to seek a greener pasture that would better recognize and appreciate the employee’s talents.

·       Identifying a high potential and working closely with leadership to ensure this employee received stretch assignments that keeps them engaged and validates their status as a high potential in the organization.

·       Not hiring an applicant that has killer skills and qualifications, because their style and approach would be counter to organizational culture and/or would leave a path of dead bodies in the wake of their success.

·       Recognizing the signs of a disengaged employee, and then supporting them through a challenging time in their personal life, keeping the employee on track and providing them resources for effectively dealing with their personal issue in a private, confidential and professional manner thereby creating “an employee for life”.

·       Helping the executive team get a full generational perspective on health care reform and the new wellness initiatives so the executive reputation is one of being attuned to the needs of the full organization and not just the executive suite.

So what’s my point?  Good question.  Metrics can be good, surveys can too.  But don’t try to quantify something that is inherently unquantifiable.  Why don’t we come up with a metric for a mother’s love of their children?  Or what’s the metric or number for quantifying the fun of riding a roller coaster?  Or the beauty of a particularly scenic vista? 

These things are not for measure.  They are recognized, appreciated, valued and sought out.  They are not for powerpoints, bar graphs or excel spreadsheets.  They are best experienced.

Some famous person (it might have been Jack Welch) said “I’m not sure you can define leadership, but I sure know it when I see it.”  Well, great HR is much like that.  You may not be able to define it in terms of your employee engagement survey, your balanced scorecard or your financial statements, but you and your executive team will sure know it when you see it!