Issue link: https://www.e-digitaleditions.com/i/227268
CEO's Letter Benefits of Use Time to 100% performance 15% 15% 7% 11% 22% 15% 15% 0% - 10% 11% - 20% Customer satisfaction 10% 25% 4% 15% 15% 19% 10% 21% - 40% 41% - 60% 61% - 80% 81% - 100% >100% Employee productivity 10% 0% 24% 20% This exceeded our expectations in terms of a definable relationship. Companies that used their data experienced significant and measurable results. Thirty percent of the total group reporting they use data (not just public companies) said they experienced more than an 80 percent improvement in time to performance. Twenty nine percent measured a greater than 80 percent increase in customer satisfaction and 14 percent experienced a greater than 80 percent increase in employee productivity. We all know measurement improves everything, but these statistics all lead to higher sales, profitability, and customer satisfaction. What does this mean? We have to stop short of arguing causation. We cannot say definitely that keeping HR operational and employee performance data causes companies to be more successful. There are many drivers that may lead a company to be or not to be successful. We can absolutely say there is a CORRELATION that companies that keep HR operational data and employee performance data outperform their peers. Maybe these companies are just more disciplined. It does not matter—w hat is clear is that the only bad choice is not keeping and using your data. Then you have no potential impact on the business. 22% 40% 12% 60% 20% 80% 8% 6% 100% Impact is what it is all about. I keep hearing that worldclass HR is about how "small" HR is as a percentage of general and administrative (G&A) spend. That is not the best measure of HR. The best measure is how "big" is the impact of HR. Would any CEO turn down a 100 percent improvement in employee productivity (half the staff and compensation expense) if the tradeoff was a 50 percent increase in the HR budget? Of course not. This study shows the true impact of three key metrics and a correlation to company financial performance. Find a copy of the full study at www.hrotoday.com/content/5300/counting-success. We would like to thank Alexander Mann Solutions for its thought leadership and sponsorship of this research, and allowing us to explore and show an important perspective about the connection between HR and business success. Elliot H. Clark, CEO NOVEMBER 2013 | www.hrotoday.com [5]