People-Equity:

How To Measure the Return On Human Capital

 Most organizations have progressed beyond the first generation of employee survey measurement—employee satisfaction and workforce temperature taking--to stronger performance related measures such as employee engagement and customer focus.  But in today’s challenging environment there is a growing urgency to maximize the value of people resources.  People Equity is the collective value that an organization achieves by having a workforce that is highly motivated, intensely focused on customer requirements and strategy execution, and capable of delivering on these requirements. 

The Survey Evolution Scale:  Where Do You Stand?
Temperature-Taking Surveys

Employee Entitlement Surveys

Tactical Issues Surveys (Engagement, Safety, Quality)

Strategic People Equity Surveys

Focused on issues awareness

Focused on satisfaction, morale, pay, benefits, job security and other employee relations issues

Focused primarily on employee commitment and engagement and their drivers

Addresses all three human capital components: engagement, alignment, and capabilities, and their drivers and enablers 

No linkage

Limited linkage to employee relations outcomes

Linkage to employee engagement, turnover, performance

Strong linkage to customers, operations and business outcomes

 

Low management commitment

Commitment to action is often low or narrowly focused

 

Commitment varies across levels and functions; greater emphasis on middle management or unit themes

Strong leadership ownership and action; high middle mgmt involvement

Assumptions

“It’s better to know than not”

“Happy employees produce good things”

“Surveys help us improve people and people processes”

“Human Capital Management is critical strategic challenge”


 The Three Dimensions of People Equity

Over 20 years of collecting organizational data and in a recent Quality Progress Magazine survey of over 1000 companies, Metrus Group has demonstrated that Employee Engagement is too one-dimensional a construct to be fully useful.  Adding Alignment and Capabilities to Employee Engagement—“ACE”—gives leaders a powerful tool for assessing, predicting, and managing organizational performance and outcomes: 

  • Alignment:   the extent to which employees are connected to the business strategy.  This includes employees’ alignment with the needs of their customers, and the organization’s brand promise.
  • Capabilities:  (1) the employee talent, (2) resources, and (3) information needed to effectively execute the organizational strategy.  In short, the right people, with the right resources, at the right time.
  • Engagementcommitment and psychological connectivity employees feel for their unit, their department and their organization.
Improving People Equity: Pinpointing Gaps and Targeting Resources

You cannot build greater People Equity without first developing the right baseline content.  This entails effectively measuring all three dimensions of People Equity, and understanding their impact on business outcomes.  In addition, it means effectively targeting resources (“Who”) at the most critical issues (“What”), and in divisions or units (“Where”) with most significant gaps (“Magnitude”).

Metrus’ PeopleEquity™ survey approach enables you to meet these challenges by providing: 

  • Quick development of the People Equity Map of strengths and gaps at multiple levels in the organization
  • Increased involvement of managers that comes from linking employee beliefs to business results
  • Rapid, efficient response to People Equity gaps, through use of resource allocation and action planning tools
The Metrus Group PeopleEquity™ Map
people equity map

A=Alignment   C=Capabilities    E=Engagement
Red=Trouble, Yellow=Warning, Green=Strength

The People Equity survey can be delivered in multiple ways to meet your needs:

  • A quick “pulse” survey, that provides an overview of People Equity for the organization
  • Full scale PeopleEquity™ survey, which also provides insights on the specific drivers and enablers of People Equity for your organization
  • Custom PeopleEquity™ survey, including items linked to your specific strategic issues, and providing a basis for focused action.

Contact Metrus Group to consult with a People Equity advisor about how our services can help you value and dramatically improve your People Equity!

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