The Evolution of Human Capital Metrics

Last week I was privileged enough to moderate a roundtable of HR professionals at the first Indeed.com international conference. Our topic of conversation centered on big data, HR Metrics and ROI. The participants represented a variety of industries including insurance, banking, retail, IT and professional services.

indeed full logoThe group talked about how talent strategy and recruitment has been shifting over the last couple of years due to technology innovation, mobile, social media and Millenials entering the workforce. With so much activity happening electronically the amount of data available to be captured, deciphered and analyzed can be astounding, not to mention overwhelming. Some of the participants said they had a hard time figuring out where to start. As the roundtable continued we also talked about the shift from relying on RMS data to using data warehouses and/or HRMS’ which integrate data from a variety of different sources. The focus on using big data to help articulate ROI in the form of human capital metrics was still an area all our companies continue to work through. As I reflect on our conversations I realized that human capital metrics also needs to evolve to include new skills such as engagement and collaboration to reflect the modern workforce.

Let’s start with collaboration. Not a new skill, but usually used to assess project management and ITbanner-about related roles. Newer generations such as Millennials rely on collaboration and crowd sourcing techniques to complete work and build relationships. As reliance on virtual interaction and engagement play a greater role in attraction and retention, collaboration is fast becoming an essential skill for all jobs across organizations, especially leadership and management roles. Let’s look at two human capital metrics that can evolve to give credit to this skill.

  • Quality of hire– measures the calibre of external new talent determined by early performance indicators with the organization.  Collaboration is gaining more industry acceptance as criteria for performance. In a recent blog post the CEB updated their definition of quality of hire to incorporate collaboration. The new definition now reads; a new hire’s current and likely future effectiveness at completing his or her individual tasks, and contributing to others’ performance and using others’ contributions to improve his or her own performance[1]. The updated definition pays homage to collaboration as an important contributor to both measuring-employee-performaindividual and organizational performance.
  • Ready Now Candidates– Measures the number of potential successors that can be developed for managerial and leadership positions[2].  With an almost even distribution of Baby Boomers, Gen X’ers and Millennials in the workforce, engagement and collaboration are two important skills that people managers need to bring to the table in the modern workplace. Organizations should build in measures to gage how effective Managers are at collaborating below, across and above their positions. This can be done as part of an employee, manager and peer review. Managers with higher rating on collaboration can not only manoeuver within the organization, but may have a higher effectiveness in leading and managing teams.

 Engagement is a current measure in the human capital vernacular. Most organizations typically send out their engagement survey once a year to gauge how connected employees are. The outcome should be to develop an action plan to address areas where engagement is low. Through blogs, social networking channels and crowd sourcing websites (e.g. Indeed, LinkedIn groups, Glassdoor, etc.) digital dialogue, or what I call engagement; is also becoming a more relevant indicator of employee retention, performance and the employee value proposition.  

 Consider that from a talent sourcing perspective, more candidates want to have a relationship with a potential employer before they make a decision on whether that employer is a good fit for them. I equate it to dating; you have to go on a few dates before you know if you’re ready to make a commitment. Let’s take a look at how two human capital metrics can evolve to include social engagement.

  • Employee Engagement Index– Measures employees’ engagement in their work. Turnover may occur if employees feel disconnected between the organization’s employment offer and their own needs. Employees on-going interactions and communications will continue to shape their opinion of the organization influencing retention and commitment[3].  Organizations are challenged to find new and different ways to continuously engage with their employees to learn about, assess and identify areas for improvement. Social platform and collaboration tools for feedback and ideas with interaction can have a positive influence on the employee’s perception of the organization, impacting both commitment and retention. Organizations that only rely on annual surveys and/or do not engage in dialogue with employees risk employees, engagement_surveyusing other public avenues to share information and voice opinions about the company.
  • Employee Net Promoter Score– Measures the difference between the number of employees who are “promoters” (recommend organization as an employer) and number of employees who are “detractors” (would not recommend the organization as an employer)[4].   Through crowdsourcing and social networking there is a broader forum for both detractors and promoters to make their opinions viral. Through outlets like Glassdoor and ratemyemployer.com, anonymous reviews can provide rich insight into an organizations work culture to potential job seekers. Organizations should be using technology to regularly engage employees earlier in the employee life cycle to pulse check their perceptions.

Talent sourcing has typically been the topic of attention on how social media and technology are workforce planninginfluencing recruitment approaches. It has higher visibility because it’s a front line operational function that can measure results. Talent management also needs to embrace changes and recognize that newer generations bring different skills to the table. Using static measures that don’t incorporate or recognize these new skills can impact performance management, succession planning and retention. Employees will continue to assess their employment offer promise and evaluate how closely it aligns with reality.

By taking collaboration and engagement into consideration, how would it impact the way you view your talent pools?

By Ann Barrett, Director eRecruitment & Social Media Strategy


[1] CEB Corporate Leadership Council, “The Metrics Standard” (2013):

[2] Ibid

[3] Ibid

[4] ibid

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Building Relationships in the Workplace

iPhone-social-appsThe information revolution has changed the way we communicate with one another. Tweets. Facebook Posts. Pintrest. Instagram. Google+, text messaging, SMS, BBM, emails… the list goes on. Mobile technology has made social interacting viral allowing people to access and update their information at any place, any time, via their smart phones.

The irony of using social technology to interact, is we move to a transactional way of interaction rather than an interperersonal way of interacting. As we continue to develop our virtual skills, we need to continue developing our interpersonal relationship skills.0418_couple-texting_sm

Most of us spend 40 hours a week (if not more) at work. We typically interact with the same group of people every day, all day. Having good working relationships with your colleagues creates a fun, positive environment and makes your time at work more enjoyable.

Relationship building is also important to achieving goals, career progression, learning and eveloping. It’s a career investment. Here are a few tips on how you can cultivate your work relationships:

85406129_8Make time to meet people in person– Many of us work in different locations and we’ve become accustomed to emailing or calling in for meetings. Why not make an effort to have some of your meetings in person? Walk over to another building if it is close enough. Toronto/Waterloo, why not take the train and make a day of it? Schedule a series of meetings in person at that location to meet the people you work with. By meeting in person, you get to know each other. Once people get to know each other they feel more comfortable and develop trust with one another. When trust is established more genuine conversations take place.

People at lunchTake a work meeting and add a social component- Having a meal with someone is a truly social component to a relationship. Have you ever met someone for the first time over a coffee or lunch? Did you notice that your meeting didn’t seem as formal, and may have been more relaxed? When we add a social dimension to a meeting, we are really introducing a casual approach to listening and sharing information. When people feel relaxed they are more open to communicating and having a genuine conversation.

79365710_8Introduce yourself to someone new: Do you work in an area where you pass by someone that you see every day, but don’t really know who they are? Take a moment to introduce yourself. Meet for a coffee to learn more about them. It’s a great way to develop your skills and expand your network.

Add an ice-breaker to your Meetings: Most people typically meet/call and get right to the point. Try starting your conversation with an ice breaker to establish a more comfortable mood. How was your summer? How was your weekend? What’s new? How is your day going? A few simple questions to show interest in the person you are meeting with can help set a more relaxed the mood for the rest of the conversation.

 What types of things have you done to build your work relationships?

Ann_Nov_2012

by Ann Barrett, Director eRecruitment & Social Media Strategy