11/23/2023 0 Comments Inform itIn Chapter 9, "The Economic Value of Job Performance," we propose a logic model that focuses on where differences in employee performance are most pivotal, borrowing from the common engineering idea that improving performance of every product component is not equally valuable.Īnother prominent logic model is the "service-value-profit" framework for the customer-facing process. In Chapter 8, "Staffing Utility: The Concept and Its Measurement," we propose a logic model that shows how selecting employees is similar to optimizing a supply chain for talent, to help leaders understand how to optimize all elements of employee acquisition, not simply maximize the validity of tests or the quality of recruitment sources. This simple analogy shows how to think beyond turnover costs, to consider performance and quality, and to optimize employee shortages and surpluses, not just eliminate them. Examples include the connections between health/wellness and employee turnover, performance, and absenteeism in Chapter 5, "Employee Health, Wellness, and Welfare." In Chapter 4, "The High Cost of Employee Separations," on employee turnover, we propose a logic model that shows how employee turnover is similar to inventory turnover. Most chapters provide "logic models" for this purpose. In this book, we provide logical models that help to organize the measurements and show how they inform better decisions. The logic element of any measurement system provides the "story" behind the connections between the numbers and the effects and outcomes. Without proper logic, it is impossible to know where to look for insights. We present the elements in the following order: logic, measures, analytics, and, finally, process. Let's examine how the four components of the LAMP framework define a more complete measurement system. HR measurement systems create value as a catalyst for strategic change. Returning to our story about the person looking for keys under the street lamp, it's been said, "Even a weak penlight in the alley where the keys are is better than a very bright streetlight where the keys are not."įigure 1-3 shows that HR measurement systems are only as valuable as the decisions they improve and the organizational effectiveness to which they contribute. 7 Even imperfect measures aimed at the right areas may be more illuminating than very elegant measures aimed in the wrong places. The significant growth in HR outsourcing, where efficiency is often the primary value proposition and IT technology is the primary tool, has exacerbated these issues. The paradox is that genuine insights about human resources often exist in the areas where there are no standard accounting measures. So it is not uncommon to find organizations that have invested significant resources constructing elegant search and presentation technology around measures of efficiency, or measures that largely emanate from the accounting system. Advancements in information technology often provide technical capabilities that far surpass the ability of the decision science and processes to use them properly. In many ways, talent and organization measurement systems are like the person looking for the keys where the light is, not where they are most likely to be found. "If you lost your keys in the dark alley, why don't you search over there?"."No, I lost them in that dark alley over there.".The man quickly scanned the area, spotting nothing.I've been looking for them for an hour," the person replied. One evening while strolling, a man encountered an inebriated person diligently searching the sidewalk below a street lamp.The LAMP metaphor refers to a story that reflects today's HR measurement dilemma:
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