Case study – building a workforce measurement framework within a global organisation
Current market instability, together with growing demand from senior executives and shareholders for meaningful financial, performance and risk data, has increased the need for HR to demonstrate the value it delivers to the bottom line.
Intelligent measurement around HR and people performance is fundamental to both demonstrating value and performance improvement.
However, developing effective measurement practices is not something that happens overnight. Experience shows that it requires an ongoing process of learning, refinement and continuous improvement.
Working with a global FMCG organisation PwC supported the creation of a roadmap to develop, implement and embed the HR and people metrics vision and plan across the organisation. The roadmap aimed to draw reference to those factors and principles which need to work together to help foster and make measurement work. Based on our experience these factors include:
Metrics framework and architecture: keeping measures focused with clear understanding from the outset of their purpose and linkage to organisational and HR priorities. Phasing the implementation plan and evolution of the framework, including establishing business-wide versus local measures and frequency of reporting.
Education and Awareness: promoting stakeholder engagement and buy-in to the measurement process. Developing the learning and capabilities to understand measurement definitions, their interpretation and application within a business and HR context.
Systems and definitions: establishing a common language around the measures, including standard nomenclature and definitions. Setting clear expectations around data quality, availability and future requirements.
Governance and communications: establishing a clear process and owners to drive consistency and standardisation in measurement – ‘one version of the truth’. Ensuring relevant communications are made throughout implementation of the measures.
For those organisations leading the way in the development of robust HR and people performance measures, there is a clear focus on driving the measurement agenda from the top, using evidence to help inform strategy and planning and as an integral means of understanding how and with what impact HR partners with the business. Organisations recognise that this is an ongoing process of refinement and advancement – what we term the ‘measurement journey’.
When used effectively, such information is used to develop business insights, help identify strengths and opportunities and develop a common foundation for decision making - a key tool for managing the business more effectively and developing competitive advantage.
For further information about how we can support your organisation in the development of a measurement framework, tailored to your organisation’s priorities and objectives, please e-mail enquiries@saratoga.pwc.com or call +44 (0) 207 213 1313 to speak to one of our team.