Saturday, August 02, 2008

On ROI, HR Skills & Perception about HR Function

ROI on Training and Leadership programs

Training evaluation usually takes into account the following factors.

• Reaction-How the participants reacts to the program

• Learning-Depending upon the nature of the program ways to measure the learning has to be worked out.

• On Job behavior -To access the effective changes for the desired result on the team and the individual.

• Business result-how the change in behavior has positively impacted business result.

• Calculating the return on investment (ROI).

Most of the organizations focus only till stage 4 of the evaluation process. Typically there are 3 aspects which are considered to be looked at under ROI.

Desired Impact- has the training program been effective it facilitating change as it was desired. Training is one of the many tools available; it must justify its effectiveness as a viable business solution to remain relevant and viable.

Cost –to substantiate that the cost incurred leads to positive impact of profitability.

• Improve the design and content of future training programs on the basis of feedback received.

The best way to evaluate the ROI on training is to do a control group experiment and evaluate the performance of both the teams on the basis of pre identified hard and soft data points like absenteeism, productivity, morale, enthusiasm etc. Only if the pre determined targets are achieved for the group which has undergone training is evident it would be viable to have effective ROI assessment. However ROI assessment has its own challenges since the effectiveness also depends on individual willingness and openness to change behavior through structured intervention.

In my personal experience the best training programs are run by people who have demonstrated exceptional leadership ability and have proven track record of being a performer and great achiever in any field of life. Only those who are exceptional achievers can inspire others raise the bar and achieve new heights.

New Skills for HR Professionals

HR function in itself is the core of any entrepreneur activity. For any organization to be effective it needs great managers and great managers must be great team leaders having exceptional people capabilities. However Marketing (Business development and Sales) and finance are two functions which HR professionals must have to become quite essential entrepreneurs. In one of my earlier post on my blog I had opined on “selling skills for HR professionals”. Cross functional expertise is a core competency for HR professional as it is involved in Hiring, training, mentoring, developing career path and designing robust performance management system and policies for all functions in the organizations. Unless it has the necessary know how of business, functional, operational and strategic goals of teams it will never succeed in performing its role effectively.

Perceptions about HR department

Depends on what we are trying to achieve, we keep reading lot of surveys and findings on the role of HR in organizations and what is expected from HR teams .Perception of employees will change only if the expectations are aligned to the common goal. As long as HR leadership in your teams are able to differentiate and successfully execute the employee value proposition and integrate the same with organizations people’s philosophy ,in my view it would have done its core function.

HR must re-define and change the way it sees itself, it ought to articulate its business value proposition and strategic contribution more effectively. It should become a viable change agent in driving the strategic goal of organizations. Only when these goals are achieved we can expect changes in the way HR function is perceived.

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Scott McArthur (麦格兰) said...

Here is the HR Development programme I put together recently. Focus on business awareness, conslulting and influence skills

kailashsa said...

hi i am uday. i am going to start an HR magazine. i am searching for writers who can contribute to my magazine. if u want to work with for part time or full time please reply me on waiitng for our reply

Jamie said...

Many new skills can benefit future and current HR professionals. Though I feel that many firms, especially smaller sized firms, are switching to outsourcing their HR department by using a PEO to help relieve some cost and time.

Anonymous said...

A keynote to HR practitioners in India.

Looking for Ready-Made Top Quality Employees? Do what the HR firms in the west does!!

What J. Ramesh meted out to the premier institutions in terms of poor quality of research being carried out at the IIM, IITs etc., actually, reverberates his own saying. How can you expect good research if your inputs are not so good? Real researchers need and they do have mindsets to perform research, as you may find in the 6,000 so Non-profit Research institutions/Public Universities and not-for-profit Scientific organizations like SSRN and RePec, Econpapers , ArXchiv, and few top 20 others) giving these top quality, high-minded academic performers shelling out their best creative ideas.
The HR people ask any one of them how they have received their MBA’s, do not even have the single ideas about the presence of these Global Brand Repositories hosted by Public-Private Partnerships. These are, by all means, knowledge banks and knowledge super houses. And back here, HR executives take the useless pains to make celebrity visits at campuses throughout India, and when their selected candidates doesn’t work out well, they blame the colleges and institutes that “most of the graduates are not employable”. Time has come that they should widen their eyes from being myopic and looks and search potential employees from these Organizations like SSRN, Ideas and others. There are 300 global repositories found in the web, but these two rank foremost, at no.1 and no.3.

The best things HR executive can avail are,

1. Best Talents not found anywhere in the world
2. Highly efficient and super proficient smart persons who can perform and adapt to high end jobs
3. No Need for any background checking, authentication already ready made.

4. Top personalities from Harvard, Stanford, Cambridge University, Oxford, Columbia, Yale, NUS(Singapore)IIM, IIT, and many others besides some unsponsored researchers who are equally good or even better than their University peers.

Just find which institutes are listed in these organizations and then contact those authors for prospective interviews or visit only those institutes that are listed in these repositories. And that’s so simple. You save money and time both!

Good thing is, researchers affiliated to these top repositories are far, far better as strategists and analysts than "bogus guys" found in the "street-mart" colleges and unrecognized institutes

When a conventional Hr executive interviews normal candidates, the candidates mentions about their “special training”, special courses, special college, “special achievement”… and so forth. Just what is really special can be only understood if anyone have their work listed in these repositories.

The Caveat is, these guys are not that easy to hunt, and they are superstars and counted among elites in academic research and business analysis.

Hope Indian HR executives will change their views about these foreign sponsored institutes and look “westward, outward, not inward and be myopic”. Failure to get a good candidate is the failure of an HR team, and these "bogus recruits" cost much to companies. So, HR executives cannot blame on the candidatature because, it was their (HR)choice, and so they cannot hide their shame (if they have any) of costing a company by not recruiting from recognized organizations, institutes.