Organizational Health: A Fast-Track Method To Improve Organizational Performance

By kwproduction

September 9, 2021

Organizational Health: A Fast-Track Method To Improve Organizational Performance

Organizations that work on their health not only experience significant improvements in their organizational well-being but show substantial performance gains in 6 to 12 months. This holds true for companies across every industry.

Our recommendation is that you practice an organizational health gauge rigorously to provide pathways for leaders at all levels to take part and measure new ways of looking at workplace behaviors.

Health and The Organization’s Success

Organizational health is more than culture and employee engagement. It is, in fact, the organization’s ability to work on a shared vision, execute the vision effectively, and renew itself through creative thinking and innovation.

There is more than a direct correlation between health and financial performance. According to the latest research, the correlation between organizational health and performance is even more dynamic, emphasizing the potential for the vast majority of companies to improve their health followed by enhanced performance. The research has also found that every organization can perform better if they take action to improve their health. Approximately 80% of companies that made concrete decisions on health witnessed an improvement.

HR Metrics Influencing Your Organizational Health

Employee Engagement

Employee engagement helps measure how much employees care about the organization they work for. Engagement is often confused with job satisfaction; however, it is an aggregate that involves contentment in areas such as relationships with leadership, growth opportunities, and company programs.

Engaged employees are likely to stick around longer and are more productive.

Training ROI

A training ROI refers to how much value your organization’s training programs are providing to your valuable workers.

Training is important for an organization, but it can be expensive at the same time. So when your training programs fail to add real business value, something needs to change in your organization. This is why you want to calculate your training ROI to evaluate productivity before and after a professional development training.


Absenteeism estimates how often your workers are absent from work over some time.

Of course, every worker needs time off and should be encouraged to take the vacation time they have accumulated. However, a higher-than-average absenteeism rate can lead to a lack of engagement and is a pressing issue for organizations. That is why measuring absenteeism is important for your organization for long-term success.

Job Satisfaction Rate

Job satisfaction refers to the proportion of employees that are satisfied in their job over a designated period of time.

While engagement is an aggregate measurement, job satisfaction precisely evaluates employees’ contentness with the work. Low job satisfaction could lead to poorly designed work, ineffective communication, or low job retention.

Cost of Rewards

The cost of rewards are the investments in employee appreciation events or gifts for employees.

There is no denying the fact that employee rewards matter. Organizations that invest in rewards experience a 50% decrease in employee turnover. Measuring rewards costs and their association with employee contentment metrics will make sure you are getting a higher return on your investment.

Goal-Setting Completion Rate

It tells you the number of workers in your organization that follow goal-setting practices. The first step towards achieving goals is to set realistic goals. The goal-setting completion metric will describe to you the overall picture of how your business is dealing with goals.

Cost Per Hire

Cost per hire means the amount of money spent to hire a new employee in your organization. While calculating the cost per hire rate, do not forget to include all posts to job boards, recruiting services, managerial time spent interviewing, applicant tracking systems, onboarding, and training.

As there is this saying, “what you measure, gets done”. Being aware of how much you are investing in new candidates can significantly impact your bottom line.

KW Productions takes pride in measuring an individual’s organizational skills, administering psychology-based assessments and tests to ensure long-term growth and success in an organization. In addition, we help you find the right tool to understand the areas where your organization can explore for improvements. If you are excited to learn more about us, feel free to contact us.

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