Developing ROI-Based Models for Measuring Success in HR Initiatives

Viekas K Khokha, SVP & CHRO, Sharda Motor Industries in a recent interaction with Industry Outlook shared his views on how the HR landscape is currently evolving within the motor vehicle parts manufacturing industry, how are advanced analytics and data-driven insights boosting the effectiveness of HR strategies in this sector, and more.

Viekas is a seasoned HR leader with extensive experience across Management Consulting, P&L, and Business Leadership roles in top MNCs and major Indian firms. His expertise spans Technology, Automation, and Healthcare, and he has a proven track record in driving transformation, developing leaders, and implementing HR tech solutions globally.

Could you outline how the HR landscape is currently evolving within the motor vehicle parts manufacturing industry?

Technology is advancing rapidly, with significant shifts in the automotive industry’s transition from exhaust systems to EVs. Also, people are focusing more on acquiring new technical skills which can be learned only through hands-on training. This involves either enrolling in courses or gaining experience in the job.

To assimilate this technical knowledge and demonstrate it practically, organizations have to render opportunities for employees.  Today, employees are looking for employers who offer a comprehensive view of technological evolution which would allow them to progress from one position to the other within the organization. And, young leaders are drawn to areas that are innovative & futuristic.

Thus, talent acquisition teams should align with these future-oriented demands and engage candidates in conversations that highlight both exciting opportunities as well as a clear path for technical advancements. Therefore, it is crucial to understand the current state of the industry, the future demands, and the evolving consumer bases, and this knowledge should be incorporated into the value proposition that employers present to candidates. 

The cultural shift within the organization is one of the significant aspects candidates consider. This includes aspects such as flexibility and work-life balance a company offers. Prospective employees are increasingly seeking employers who would allow them to manage their personal lives as well as hobbies while maintaining their professional responsibilities.

When we talk about key performance indicators (KPIs) like Employee Turnover Rate and Training and Development Investment, which are crucial for measuring HR success in this industry, how do they fit with overall business goals and employee growth?

One of the major factors that is crucial for our growth and development is retaining talent. Perpetual hiring without effective retention strategies can be inefficient. Hence, it is crucial to retain talent internally. Also, managers should be coached to handle numerous discussions whether the discussions are about development, exits or performance reviews. And, this coaching is crucial for ensuring that managers can build strong rapport with their teams.

One of the KPIs in this context is employee turnover or outflow and the aim is to reduce turnover by enhancing the quality of discussions as well as the ability of managers to connect with and support their teams.

The turnaround time right from when a vacancy is posted to the time it is filled should be minimized to increase the efficiency of the hiring process. Also, any gap in staffing represents a loss to the firm. This KPI is usually measured by the duration as well as geographical distribution of these gaps and lastly, reducing the number of days a position is vacant is crucial for maintaining efficiency in productivity.

What is paramount from a cultural perspective is to provide ample opportunities for employee development as well as growth. The performance management system should be transparent as well as governed by clear, forward-looking policies. Effect performance management comprises involves not only completely evaluations on time but, also making sure that employees understand their current standing as well as prospects.

The evolution of these KPIs depends on our conversations with leaders & their ability to assimilate & transfer these KPIs to their line managers. Effective coaching & communication are important for embedding these KPIs into our organizational practices.

How can advanced analytics and data-driven insights boost the effectiveness of HR strategies in this sector, especially in terms of measuring ROI?

Advanced analytics & data driven insights can enhance HR strategies significantly in the finance industry specifically when measuring ROI. Automated tools & robots are increasingly enabling organizations to process data conclusively on the ground, with data analytics advancing into the AI space. Therefore, a data-driven approach is becoming highly essential, allowing organizations to make well-informed changes.

It is imperative to have the right automation tools that can effectively assimilate data for harnessing the power of data and this involves not only analyzing lag indicators but also focusing on lead indicators for predicting future trends as well as guiding decision-making. The intelligence of these tools is vital and they should be capable of collecting relevant data from both individuals as well as the industry to ensure that leaders have the necessary information that is required to make informed decisions.

Also, timeliness & customization of the data are crucial and data should be presented at the right time & in appropriate format. The currency of the data – how recent it is plays a major role in its usefulness. Customized data presentation is necessary for ensuring that the information leaders obtain is customized to their specific requirements as well as preferences which helps them in making timely & effective decisions.

Having forward-looking, customized data is specifically important in the rapidly evolving automobile sector since changes occur daily. And such kinds of data facilitate leaders in making faster, more meaningful as well as smarter decisions. Various communities within the firm need data in numerous forms & shapes and this necessitates thorough analysis as well as customization by the tools that help in gathering the data.