Human Resource Development Index-A check on prosperity within organization

“If I say that for today’s employee it is well adequate merely to have a satisfactory job, an office to work in and a salary at the end of each month, I would be wrong in my deliberation for a large number of employees.”

Salary is no more the sole satisfier in job, Today’s employees expect and want more from their working place. The desires, the aspirations and the challenges for the workmen are becoming more complex every passing day. To match the briskness and meet the demands the organizations need to manifest them as an attractive place to tap the best talent around.

The mounting technological progress, strengthening Globalization and Environmental issues are swiftly transforming the ancient description of work culture for the organizations. It is observed that even today certain companies especially PSU’s rely on old traditional methods and policies for their functioning, however the older ways of performing jobs are ageing and that change is crucial.

 Be it a small start-up or a larger firm everyone looks up for growth and achievement in terms of tangible results. Employee productivity has become one of the important areas of concern. It is high time and the organizations must break the monotony and revisit the concepts of measuring their prosperity and success rate. There is a vital need for a new concept or a tool that can help organizations assess their own prosperity rate and draw a comparison with others at the same time.

The idea is to give a more holistic view of organization’s development status compared to others in the market. This will eventually help organizations enhance efficiency and productivity at the workplace.

Human Resource Development Index (HRDI) can be a revolutionary tool to question the status of prosperity within the organization. The tool includes analysis based on four parameters/dimensions namely-

1. EMPLOYEE HEALTH

2. EMPLOYER BRANDING

3. RATE OF INCREASE IN REMUNERATION

4.  EMPLOYEE RETENTION RATE

Reasons for choosing above mentioned parameters-

1. Employee Health

In today’s competitive world employees try to put in best of their efforts 24x7, many even try to go beyond their call on duty. This can lead to crisis in personal health and infect can affect the family life too. The organizations must try to achieve equilibrium between their expectations from the employees and their health. The job shouldn’t be exceptionally demanding to hamper the employee health, thus making employee health an important factor to judge the prosperity within organizations.

2. Employer Branding

Employer branding has become more important today than ever before. It portrays who you are, what are your values, principles and ethics as an organization. Be it an outsider or an insider everybody can get lure by how the organization represent itself in front of its employees as well as the people outside the organization.If organization fails to communicate its employer brand and sets unrealistic expectations of it as an employer by setting impractical employee value propositions (EVP’s) employees might feel bemused or misled.

3. Rate of increase in remuneration

If organization wants employees to perform well, it needs to take care of their happiness provided the benefits are regarded as equitable. It will enhance employee satisfaction, boost morale and eventually increase employee retention rate.

4. Employee retention rate

Employee turnover directly affects the upshot. If employee retention rates are high it is good for customers as well as employees.

While customers get benefitted from the knowledge and expertise of more experienced employees, employees get benefitted from learning and bonding with their co-workers. Keeping retention rates high can make a happy, well-functioning organization.

Each parameter is further subdivided into 5 determinants. Each determinant would be given a value out of 10. Less than 5 will denote poor performance in that area and more that 6 will denote a better picture of success in that section. Geometric mean of indices for each of the parameters based upon the determinants could be calculated.

EMPLOYEE HEALTH	EMPLOYER BRANDING
1. No. Of sick leave taken by employees	1.Record of advertisements and promotional programs
2. frequency of routine medical check up	2. Evaluation of what percentage of employees would recommend your company as a great place to work (SURVEY)
3. First Aid record within the premises- no. Of injuries	3. Record of trainings to deliver brand experience to the employees
4. Database/Records concerning health insurance cla0ims/pharmaceutical claims	4. Benefit(profit) out of new marketing practices
5.No. of worksite visits to evaluate health risks and review health promotion policies	5. Net Promoter Score (NPS) - To find out the loyal and happy customers.

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RATE OF INCREASE IN REMUNERATION	EMPLOYEE RETENTION RATE
1. No. Of job promotions within an year	1. Evaluating employment stability through turnover rate
2. Employee stock option plans (ESOPS) trend	2. layoffs rate
3. Rate of Bonus availed	3. Learning and Development opportunities/sessions/certification programmes/career growth
4. Rate of perks availed	4. Strategies for handling Work life balance issues
5.Market pay position (equal, above or below other players) through salary  survey	5. No. Of employees who have served for more than 3 years

Future perspectives

If HRDI gets implemented it shall be updated annually and shall serve as a vital point of reference for academics, students and practitioners in the field of human resources. The index would open up a wide array of unique opportunities for organizations, practitioners, and students such as-

·         The prospect to highlight distinguishing features of organization’s growth and development for HR professionals.

·         An opportunity to enhance HR brand equity and overall company brand.

·         The chance to augment organizations image through HRDI development program’s brand image.

·         A resource for benchmarking current organization’s development program with other top companies.

·         The unique opportunity to keep prospective candidates informed for hire prior to campus information sessions and interviews.

·         The opportunity for students to gain knowledge of which companies may be a good fit for them.