The Pareto Principle states that 80% of our success comes from 20% of our activities. Do you know which activities count toward success in your job? If not, it is time to purchase or design a system to start tracking where you spend your valuable time.
In business… some High Value Activities Habits might include:
When we are motivated by goals that have deep meaning, by dreams that need completion, by pure love that needs expressing — then we truly live life.” – Greg Anderson
The same philosophy is true for engagement with one’s work. The more meaning a person builds into their work life, the more engaged he becomes with his work. How does engagement build momentum? Engagement begins with engaging managers, leaders, and owners.
Employee Engagement means…
Sometimes I have to apologize for my daily insight as it should be a no-brainer. Yet, it seems every week there is a call or an executive that wants some type of training for their company or group that can not answer this question.
How can you determine the return on investment for any training if there is no thought regarding the objectives or outcomes from the engagement?
This has been (and seems to continue to be) an issue in the corporate environment. There are direct and indirect expenses involved with training as well as time lost from a daily job environment. If there is no objectives – ones that can be measured – how can anyone determine if the training is paying back?
Beyond salary and sales, there are many important aspects of talent management that are often not tied to the bottom line. Yet, “dollarizing” the value of talent management initiatives is vital to bottom-line analysis. Whether you are placing a value or cost on your current status, or calculating the ROI of your next talent management strategy, metrics that assess the monetary value will help you see the true effect on the bottom-line.
Bottom Line Statistics
Knowing the bottom line results of talent challenges will help you implement strategies with a proven ROI that you can see on your balance sheet. Find out how much you already know by asking yourself questions like:
• What is disengagement costing the bottom line?
• What was the ROI on your last training? What can be expected of future training?
• How are your team-building initiatives impacting your bottom line?
• What was the cost of your last bad hire?
• What is your overall turnover percentage? How is it related to tenure?
In a study on over three million employees, Gallup found that over 70% of Americans who go to work are not engaged. This means businesses may be operating at significantly less than full capacity, a loss that could cost millions a year.
• What is employee disengagement costing your company? Several thousands, millions, more?
• How can you calculate this cost?
• How does it compare to the investment of a proactive approach to increasing engagement?
With tightening budgets and a focus on cost-saving strategies, businesses worldwide are making drastic labor cuts. But is that always the right move? A recent study analyzed the savings resulting from changes in general and administrative functions and found that 75% of the savings came from strategies focused on restructuring and redesigning, while only 25% was from reducing.
• Would you, too, save three times as much on your bottom line by investing in your people and processes?
• Is the slash and burn approach actually costing you more?
• What would the ROI be if you restructured and redesigned your workforce?
As business associates who want to make a difference in the bottom line, we might find advice in Aristotle’s quote by remembering to assess, in money, the value of talent management initiatives so we know its true worth. How else can we place fair value on the investment in people? After all, they are a company’s biggest asset.