Measurement at heart of RAC people strategy

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Human capital management (HCM) is so fundamental to business success that it is a ‘mystery’ why some companies don’t include people information in their annual reports, according to the most senior HR professional at the RAC.

Jill Nealon, group HR director at the motoring organisation, said companies that do not believe HCM is integral to their business should be asked whether they would put their customer satisfaction score in their annual report or marketing literature.jill-nealon-feb05-100x100.jpg

“If the answer is yes, then you have to report on your people because it’s one and the same,” she told Personnel Today. “If your message to customers is: ‘we care about you, we care about the service we give’, it follows logically to say: ‘we’re doing that by making sure the people who interact with you [staff] also feel satisfied’.”

Since 2003, the RAC has produced a monthly ‘People Profit & Loss’ statement that looks at absence, staff satisfaction, internal promotions and leadership development. It also includes a stability index, which tracks the number of people leaving the company in their first 12 months of employment.

Alongside this, the group also conducts a yearly staff satisfaction survey, with its results published in the annual report.

Results for 2004 include an overall 73% satisfaction rate, a 2% increase on the previous year and 7% short of the group’s target for 2007. This satisfaction score was based on an 86% response rate from the group’s 11,500 employees.

“To me, the fact that so many people complete the survey is a huge message – it tells me that people care,” Nealon said. “The worst thing in any organisation is apathy as that’s always harder to deal with.”

The positive people metrics were reflected in strong financial results at RAC. Last week, it posted a £77.7m pre-tax profit for 2004, up from £25.7m in the previous year.


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