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The drugs that HR puts into your company

The Huey Lewis song, "I want a new drug" could be an HR Pros theme song. The ideas HR comes up with related to culture, performance, hiring and training are like drugs to your company with no understanding of the side effects until tied to business results. The ping pong tables, beer, hot dogs, free food, health care plans or education offered for keeping people happy and productive at work are drugs intended to increase productivity, but what are these drugs doing to the overall health of your company?

You need a measurement. In dealing with people and culture, measure the health of your company with its Revenue Per Employee (total company revenue/total employees). RPE. This measurement should always be top of mind. See picture.

All the work you do in performance management, training, culture, onboarding, quality of hires comes down to Revenue Per Employee. Nobody wants to hear the Talent guy/gal talk about hiring, training and culture until they know how the work they do is bringing in money or saving the company money.

Think a training program will increase sales, a key hire will help you win or a new hire program will make people more productive faster? Measure what you are thinking and tie into Revenue Per Employee. Without knowing the impact on revenue or cost, you are just pumping in drugs to your company with no way of knowing what the side effects are...