B Y: A M B E R L E E R YA N
H R M N 3 9 5 6 3 8 0 T H E T O TA L R E WA R D S A P P R O A C H T O C O M P E N S AT I O N M A N A G E M E N T
Give the whole picture, including quantity, quality, time, cost and effectiveness.
Focus on key areas where change is necessary.
Develop a benchmark to use for evaluating progress toward goals. Set goals and establish metrics for measuring progress.
If possible, be compared to metrics with similar measures from key competitors.
Use the language of the business leaders, including ratios and measurements they know.
Introduction & Purpose
Measuring metrics is important to any business since it will allow Human Resource professionals to provide a context around which organizational or unit performance can be analyzed more precisely.
The measurements could be:
•projected future performance
•internal reference points
•external reference points.
Definition of the Term Metric
Metrics, also known as measures or key performance
indicators, are simply a tool for assessing the impact of a
particular project or activity.
Metrics can include quantitative and qualitative measures, such as: •reducing turnover
•reducing time to hire
•increased production or services
•more satisfied employees
•more satisfied customers
•ability to expand or introduce new products
Explanation of the Use of Metrics in Evaluating the Success of the Total Rewards Program
Qualitative or quantitative,
metrics provide clear and
tangible goals for a project,
and criteria for project
success. It is through the
measurement and reporting
of key metrics that programs
can be assessed, evaluated,
and changed, if necessary, to
procedure will assist
to hire better people
for the available
and training new
employees costs the
Ensuring the right
people are hired will
Employees that are
work within a
company should be
rewarded to ensure
that they feel
appreciated and will
want to stay with
turnover rate will
save the company
Justification of the Metrics Selected (Links to the Organization’s Success, Requisite Capabilities, Competencies and Challenges) RECRUITMENT
•Number of applicants
•Candidate Sources: Where did
they come from?
•Quality of hire
The overall goal of hiring should be to improve
quality-of-hire. Cost-to-hire and time-to-hire, for
example, pale in comparison to quality-of-hire
(although they might have a relationship with each
That said, recruiters themselves aren’t fully
responsible for quality-of-hire. Recruiters are
responsible for delivering what hiring managers
want in their candidates. If recruiters are
consistently delivering what hiring managers want,
and yet the hires aren’t working out, it falls onto the
shoulders of the hiring managers; not the recruiters.
Justification of the Metrics Selected (Links to the Organization’s Success, Requisite Capabilities, Competencies and Challenges) RETENTION
Deciding which three to five factors are the most
important is where your judgment and organizational
knowledge is key. Only once you know what is critical
can you design your data collection process to capture
The simplest way to capture this information is to
include your three to five factors with standard
descriptions on the forms required to process an
employee exit. This requires the manager to provide this
information in order to complete their responsibilities.
Your three to five factors, once tracked and used to
calculate your scores, will start to show you the pattern
Please join StudyMode to read the full document