Is Your Organization Maximizing Its ROP?

Businesses set goals and track performance based upon a wide range of “Rs”:  ROI. ROE. ROA. ROTC. 

But what about ROP

“What’s that?” you ask. 

Not familiar with ROP? ROP is at the heart of all the other “Rs.”  It’s your “Return on People” - the “return” that positions your organization to succeed. To maximize your ROI, ROTC, ROA, or ROE, you must first focus on maximizing your ROP. 

But how do you do that?

Step One: Realize that your people are an investment, not an expense.

When we need to upgrade technology, we invest in new applications, software, and hardware. When we need more space, we invest in new facilities. When we need to upgrade the production line, we invest in new machinery. But when it comes to people, all too often, we talk about “expense.”  Let’s challenge this mindset. Without people, all those other investments have no value. Our buildings stand empty. Our technology and machines stand silent. Our customers go unserved (or go elsewhere). Organizations must invest in people to maximize the return on all other investments. 

Step Two: Invest in areas that will maximize your ROP.

Talent Assessment and Acquisition

Ensure that your people attraction and selection processes bring the right employees to your team. For years, attracting and selecting the right talent has been a challenge. Talent shortages and skills misalignment are a reality of today’s labor market and have created challenges for organizations across industries and geographies since well before the word “pandemic” became commonplace. 

For many organizations, current talent acquisition practices aren’t working - and this limits organizational performance, creates risk, and adds to employee burnout. 

Are your talent acquisition processes driving organizational performance or holding it back?

Talent Retention and Engagement

Since 2021, employees have been leaving jobs in record numbers – 47.8 million in 2021, 50 million in 2022, 30.5 million as of the end of August 2023. There are a multitude of reasons for all this churn – work/life balance, compensation, “toxic” culture, lack of leadership, limited career opportunities, lack of recognition. Whatever the reason, employee turnover can have a meaningful impact on an organization’s ability to meet goals and maximize performance.

On top of this, organizations struggle with the reality of “quiet quitting” – those employees who are technically still employed but mentally checked out. Doing the bare minimum or flying below the radar – completely unengaged but still on the payroll.

What’s the state of employee retention and engagement at your organization? Are your people empowered to perform at their highest potential, igniting your organization?

Total Rewards/Compensation

Scarcity of talent, in combination with economic inflation, has driven meaningful change in employee compensation. These changes have happened across industries and geographies and have impacted roles from entry-level to the C-suite. While certainly not the only solution, market-competitive compensation is one of the necessary foundations to drive an organization’s ability to attract and retain the employees needed for success. 

Does your organization have a solid understanding of what market-compensation looks like as well as cost-effective and equitable salary administration strategies for base compensation, variable pay, and total rewards?

Leadership Development

Strong leaders build strong and engaged teams which in turn, drives organizational performance. But strong leaders are made, not born. All too often, organizations promote employees into management and leadership roles because of their strength as individual contributors but fail to make the investment in leadership training and development. Without the skills to lead, the leader and the team, flounder or fail. 

Do your managers and leaders know how to inspire, train, and lead a team that’s willing and able to perform to its highest potential?

How is your organization doing when it comes to maximizing its ROP? 

We’ve asked a lot of questions here but not provided much in the way of solutions. Over the coming months, Herbein HR Consulting will present a series of blogs, webinars, and podcasts, addressing these topics and more – all aimed at helping your organization ignite its performance by maximizing its ROP. This content supports our firm belief that when you empower your people, you empower your organization. 

Have challenges that can’t wait? Looking for a strategic partner who will help you build a thriving and empowered workforce? Contact Herbein HR Consulting today – we’ll ask a lot of questions and then work together to unlock your organization’s potential and elevate your ROP.

Article contributed by Karen H. DiGioia