Successful organisations understand that ROI isn’t just generated by the sales and marketing team, nor is it only a concern for the finance department. Generating Return on Investment should be a priority for every facet of a business; especially HR.
After all, your people are what create a great product or service, which in turn generates a profit (or loss), so ROI should naturally be a priority when it comes to managing people.
Every single person employed in a business is an investment, and by guiding our people to perform at their peak, reducing attrition, and investing further in our people to develop them, we can maximise productivity and the subsequent returns.
The following guide will offer a practical introduction to understanding how people generate ROI in different stages of their employment, and how to maximise and extend this.
We will cover:
- Getting new starters to break even faster
- Increasing performance post-break even
- Accelerating and extending peak performance
Understand your break-even point
Naturally, the first area where organisations can maximise their profit potential is generating greater outputs and productivity levels from their workforce.
Performance naturally peaks and troughs along with the employee lifecycle, so by modelling this we can start to determine where new hires start generating returns for the business. This is demonstrated in the Employee Lifecycle Performance Curve.
When an individual starts a new role, they go through a phase that requires investment by the organisation to get them to the point of break even, at which time the employee generally starts to generate more value for the organisation than it costs to employ them.
Perfect the onboarding process
A consistent and high quality onboarding process delivered consistently to all new starters will help limit wasted time at the beginning of an employee’s tenure while also giving them a good first impression of the organisation.
Where possible, get a head start by kicking off the onboarding process before an employee starts their first day. Most paperwork or compliance tasks can be completed over email in the lead up to their start date so the employee doesn’t have to spend time filling out forms when they start work.
This is just one way you can always be prepared for new starters and ensure they have everything they need to hit the ground running in their new role. Once the new starter has officially joined your organisation, all necessary training should also be provided as soon as possible, allowing them to start productive work sooner.
Build a solid foundation with probation
Probation checkpoints can easily be built into your onboarding process to further set new starters up for success in their first 3-6 months. Using a people management system like intelliHR you can set up automated check-in forms to go out to new staff during their probation, gathering insights for managers into any areas they may need to provide further support or recognition. This allows managers to deal with potential problems early on, giving the team member maximum opportunity to pass their probation, while ensuring performance-limiting issues are not carried forward into their ongoing employment.
Speed up the learning and ownership curve
One way the onboarding phase can be accelerated is by introducing new starters to their role in a phased approach. By starting them off with
People can be considered to be in the “Performing” phase once they have reached the break even point. At this time, the organisation’s objective now firmly turns to help the employee both quickly reach and sustain peak performance. It is while an employee is at peak performance they are deriving maximum profitability for the organisation.
It is possible to take control of this performance curve to accelerate and even extend performance throughout the employee lifecycle. In order to achieve this,
Click here to continue reading this article on intelliHR.