This [standard] cliché is repeated over and over by the
world’s public employers in their most valuable marketing piece, their Annual
Report. We know it’s BS. You know it’s BS…and so does everyone else.
Employers, in their infinite wisdom, realize that
investment in their firm, at least in part, is subject to the public perception
that cash, bricks and mortar aren’t the only factors in a firm’s success and,
at the very least, some reasonable effort to avoid outright abuse of their
employees is critical to supporting the brand they’ve managed to build. To that
extent, employment and product brands are intertwined
One could note, for example, that sales of clothes for example, tend to
go downhill quickly when a little light shines on them being made with child
labor at starvation wages in some distant country.
Taking a more traditional approach however the critical
work by Becker, Hueslid and Ulrich on the HR Scorecard
(2001) during the last couple decades demonstrates that if we
can improve the engagement of our workforce, those higher engagement scores
coupled with our [HR] scorecards tend to be statistically correlated with
increased corporate performance.
So, occasionally, it’s not BS. There are times when firms
actually walk the talk and reap the rewards of managing a great workforce.
Sounds like a value proposition for HR to me.
What if we could all agree (Agree? I know, but there is a
point to this ludicrous speculation. I promise) on a couple of the metrics that
differentiate between how employers manage their workforce for performance and
those who are simply engaged in a creative writing exercise? And, god forbid,
what if we discovered that those companies in the former group did perform
better!
People seeking to invest their money might want to know a
little more than, “Our employees are our best asset” when they read the
company’s literature.
Public firms walking the talk might want to share more of
those measures to attract their fair share of investment.
There is, amazingly, a methodology for obtaining agreement
[consensus] on professional issues developed by the American National Standards
Institute (ANSI), a body recognized by (and sitting at the table of) the
International Standards Organization (ISO).
And, for the last four years, with SHRM as sponsor and
underwriter, literally hundreds of professionals involved in every aspect of
HR- researchers, vendors, consultants, practitioners, educators, etc. have been
debating incessantly over dozens of fundamental HR terms, measures and
practices with an eye to creating an agreement or two or two hundred i.e.
Standards.
It takes time- two to four years for each standard so the
work isn’t for the faint of heart, those easily frustrated or for the folks
with lots of opinions and little else to back it up or for folks frustrated by
folks with lots of opinions and little else.
And we’re not talking about a standard that everyone must
use but, instead, a voluntary standard that people would want to use, adopt or
comply with because of the imbedded logic of the agreement.
Take Cost-per-hire as an example. It may not a true measure
of staffing efficiency or productivity but it is one small component in
developing such an ROI. Everyone thinks
they know what it is but there are dozens of definitions being used in the
workplace. No two software applications calculate it the same way. Arguably
some would say we should not be measuring CPH at all because we tend to place
too much emphasis on it.
But, if we are going to measure it, why not agree
on what IT is. Then, we can emphasize its appropriate uses from a common base.
Employers now have a comprehensive document that covers
the subject. Hundreds of academics, practitioners, educators etc. have agreed
on it. Vendors, including most notably ADP, have already adopted the standard
and reconfigured their software to comply with it. Next stop ISO.
Time to up the ante.
The person who led the workgroup under the SHRM/ANSI
Staffing and Workforce Planning Standards Taskforce that obtained consensus on
CPH now heads the HR Metrics Standards Task Force established in 2011. This newly
formed Task Force created a workgroup on HR Investor Metrics and volunteers
were sought. They came and debated and even engaged colleagues in Finance and
Investment communities to participate. Their initial thinking in what is likely
a two to three year process was recently placed in Public Review.
And all hell broke out.
For those looking to create some real disruption over the
next few years, I would encourage you to join the standards movement. Our manufacturing
colleagues get it- few firms fail to comply with ISO 9000 and similar
standards.
You can argue all you want that HR is different but there
will then come a time when an HR equivalent of ISO 9000 is adopted and…we may
know whether your employees are your firm’s greatest asset…and what to do to
make it so.
(Sooner, rather than later there could even be voluntary
standards for the treatment of candidates. What a radical notion that would be.
#tiltingatwindmills)