While starting the journey to another financial year, let me raise an interesting question to the Corporate world- along with the stock taking of our physical goods, don't you feel its important to take the stock of skills level of the most valuable asset in our Organization - the Human Asset?
While humans can be physically replaced, the skill-sets and knowledge of a person leaving an organization cannot be exactly replaced by the successor. It is widely held among business decision-makers that the skill of employees account for 85% of a company's assets. Employee skills determine the speed and success of organizations.
Most of our employees are hired to do specific functions based on current need. As the strategic direction of our organization changes, these employees (human assets) yield less and less. In other cases, employees hired for a specific function never have their full capabilities assessed or explored. Further, there is a general inability to quantify the capacity of human resources. Consequently, the organization cannot effectively determine when it has reached its affordable human asset capacity level.
Performance Reviews – a standard performance review usually includes a discussion between the employee and his or her manager to assess the competency proficiency. A strategy for professional development to allow the employee to improve their performance or improve their chances of a promotion can be included in the review.
Interviews – interviewing managers and employees with open ended questions allows for qualitative data to be accumulated. Resistant attitudes, misconceptions and other barriers to good performance may be revealed using this methodology that may not be revealed during a manager-employee performance review conversation.
Customer Feedback – if customers or stakeholders can be surveyed or interviewed they can be a great source of feedback on the performance of a group of employees or individual employees.
Performance Tests – certain skills can be tested using standardized tests and metrics can be measured to provide quantitative data (multiple choice, fill in the blank etc.) of performance levels.
Audits – A checklist of operational standards can be made and employees can be checked against the list.