employee recruitment, labour-intensive organisations, management functions, manpower, Measuring talent, Mehreen Ahmed, modern management, Peter Drucker, Return On Investment, revenue per employee, ROI, talent metrics, targets, workforce, workforce innovation index
Peter Drucker, the founder of modern management once said: “You can’t manage what you don’t measure”. Since acquiring, managing and retaining the right ‘talent’ is the topmost priority for most organisations today, this quote takes on special meaning and to this end, talent metrics (indices that quantify and measure the value of talent in organisations) are gaining traction across Pakistan’s corporate sector.
Here are three talent metrics you should employ to ensure a dynamic, skilled and talented workforce:
1. ROI (return on investment) on manpower is calculated by dividing the organisation’s net income by the cost of its management functions, which include employee recruitment, interviewing, testing, orienting, training and rewarding. An increasing ROI over time justifies your expenditures; if the ROI continues to decrease for more than a year, it implies that your workforce is dominated by redundant employees, unable to meet targets and who need to be replaced. Continue reading