Human Resource Metrics Issues - Research Paper Example

A Human Resource (HR) metric is often regarded as a tool or means, which is used to access or analyse various operational aspects within an organisation. The data acquired with the help of this tool is further used as a criterion, based on which certain specific decisions are taken within an organisation. Correspondingly, it would be crucial to mention that the company, i.e. Amazon Inc always intends towards enabling active participation of the employees in attending to the targets set by it. However, the company is also aware of the fact that to encourage the employees or the workforce to work for accomplishing the goals of the organisation, it needs to reward them for their appreciative contribution. Hence, the company would implement the HR metrics to develop a proper total reward program (Carlson & Kavanagh, 2013).

This paper would illustrate the various crucial metrics that will enable Amazon Inc to depict the potential employees to be rewarded under the total rewards program of the organisation. Contextually, the organisation will implement human capital value-added metrics, turnover cost, prorating merit increases and absence rate among others.

A company cannot be able to operate efficiently in the absence of a dedicated and efficient workforce. Contextually, this aspect influences them to encourage employees with rewards of various kinds under their total rewards programs. In this stand, it will further enable them to have maximum retention and satisfaction of the workforce. Amazon Inc employs thousands of employees, for executing its operations worldwide. Correspondingly, a total rewards program will need to be developed with the help of the result obtained from the computation of various HR metrics.

The first HR metric that needs to be computed is the rate of absence in Amazon. Measuring the rate of absenteeism among the employees will enable the organisation to depict its current position regarding employee health and other aspects that led to increased absenteeism. It would also be vital to mention that an increased percentage of absence rate will directly impact the productivity, efficiency and quality of work of an organisation negatively. The metrics of absence rate will enable the company to acquire data about the present rate of absence in the organisation along with the reason for same. It has been noted that the augmented rate of employee absence is at times owing to the reason of lack of satisfaction among the employees which, further arises from lack of proper reward. Hence, Amazon Inc would be able to design a total reward program about overcoming the reason that leads to dissatisfaction among the employees (Hauser & Katz, 1998).

Subsequently, the company will also require to calculate the HR metrics of Human capital value added to develop a proper reward program. Analysis of these matrices will enable the company to acquire data regarding the value added by an employee to the organisation. In this stand, these metrics will further enable the company to frame its total reward strategy by the value every employee ensures for the organisation. Additionally, the computation of the prorating merit increases metrics of Amazon Inc., will enable the organization to acquire data that will ensure a hike to be given to an employee depending on the tenure of his/her work with the organisation. This analysis would be valuable for the company to determine the total reward program for the employees working within the company (Jackson, Schuler, & Werner, 2011).

Correspondingly, in addition to these aspects, Amazon Inc. might also implement the HR matrices of turnover cost, which will enable them to know about the loss that the company incurred by losing a particular employee. These matrices will also depict the cost, which the company invested in the recruitment, selection and training needs of an employee. Subsequently, the metrics will also portray the cost incurred in the recruitment of new employees, when an existing employee leaves the organization due to dissatisfaction. Hence, it can be affirmed that the data gathered through these matrices will ultimately enable Amazon to come up with an enhanced rewards plan considering the needs and satisfaction of employees in the workplace (Jackson, Schuler, & Werner, 2011).

From the overall analysis of the paper, it can be concluded that employee satisfaction is one of the crucial factors that impact the performance of a particular company indirectly. In most occasions, employee dissatisfaction directly associates with a lack of proper rewards in the organisation. Hence, with the computation of certain HR metrics, companies would be able to acquire valuable data that further assist the company towards developing a proper total reward program. Read More