In this webinar on ROI models for HR, Veronica Sjöstrand and Christian from Assessio and PTS introduce their collaboration and the importance of HR’s strategic role.
They emphasize the need to quantify HR's value through a structured ROI model, inspired by industry experts like Dave Ulrich, Forbes, and BCG. The aim is to bridge the gap between intangible elements, like employee behavior, and tangible financial metrics, making HR’s contribution clearer to CEOs and CFOs.
Key elements of their ROI model include:
1. Time to Hire: Highlighted as a crucial metric, where using data-driven tools like competency assessments can reduce recruitment time by 25%.
2. Quality of New Hires: A good job fit enhances productivity and reduces employee turnover, positively impacting revenue.
3. Time to Performance: Speeding up onboarding and ensuring a good fit between employees and roles leads to quicker contributions from new hires.
4. Absenteeism: The model suggests that aligning job roles with employee strengths increases engagement, reducing absenteeism.
5. Employee Turnover: High-quality hires aligned with job demands reduce turnover, improving organizational stability and long-term profit.
Veronica and Christian present their "2.0" version of the ROI model and encourage feedback to develop it further into a collaborative "3.0" version. The model allows flexibility, enabling organizations to customize it according to their specific needs, highlighting cost savings and potential revenue growth based on various value drivers.
The session ends with a Q&A where they clarify that while some factors like productivity loss from turnover aren’t directly included in the model, it’s designed to be conservative and adaptable. They invite participants to engage further and offer insights for future iterations.
18 сен 2024
