Balanced Scorecard: How to Reduce Term Paper

3.5. Leadership

Too often, managers will have the tendency to be technical, well organized, clear and succinct. While this approach is indubitably important, it should also be recognized that people do not only need to be managed, but they also need to be led. The transformational leadership style is gaining in popularity due to its focus on empowering employees and directing them in the sense of positive and beneficial change (Changing Minds).

(1) Measurement of the element -- questionnaires and interviews, performance assessments

(2) Source of element measurements -- organizational documents, employees and managers

(3) Ability of the element to stimulate motivation and performance -- through motivation and stimulation of involvement

3.6. Future of the employee

Employees will increase their loyalty to the firm when they feel that their future is secured by the entity. Two examples of how this could be achieved include training programs -- previously mentioned -- and retirement plans. Both show the employee that the employer invests in their future.

(1) Measurement of the element -- company documents and statistics, employee satisfaction levels

(2) Source of element measurements -- company records, employees

(3) Ability of the element to stimulate motivation and performance -- through the insurance of future stability for the employee

3.7. Talent management and promotions

Promotions represent one particular non-financial incentive and it can stimulate employee loyalty through the recognition of the employee's worth and efforts. Talent management is a particular dimension of training in the meaning that special emphasis is placed on employees with special skills. In times of economic crises, managers are presented with an increased opportunity of hiring the specialists which were otherwise unavailable (Talent Management). As such, contrary to traditional belief, human resource investments should not be ceased during times of economic recession, but readjusted to new features.

(1) Measurement of the element -- promotions, employee discussions

(2) Source of element measurements -- company records, employees

(3) Ability of the element to stimulate motivation and performance -- through the recognition of the employee's merits.

3.8. Other non-financial incentives

While it can rarely be argued that financial incentives do not apply to all staff members, the same can however be said about the non-financial incentives. In a society which forwards uniqueness and individuality, organizational staff members are presented with incremental possibilities of requesting that certain benefits be offered to them. In other words, managers cannot expect to implement a certain type of non-financial incentive and use it to satisfy the entire employee community.Some individuals are motivated by the recognition of their efforts, while others are motivated by the ability to best balance professional and personal life through flexible working schedules.

(1) Measurement of the element -- interviews and questionnaires

(2) Source of element measurements -- current employees and past employees

(3) Ability of the element to stimulate motivation and performance -- through the personalization of the incentives offered in accordance to the unique needs of the employees.

3.9. Other business aspects

Customer: The organizational customer would feel the final impact materialize in a higher quality of the products and services delivered

Internal: Within the internal environment, modifications would occur in all business operations as these would focus more on employee on the job satisfaction and motivation to achieve superior performances

Innovation and learning: the new organizational strategies would enhance the learning processes at the company and would stimulate the organizational transformation into a learning company

Financial: In order to implement the employee retention strategy, an initial sum of $10,000 is required in terms of initial assessments, training programs and incentives.

4. Conclusions

In a context in which the role of employees within the organizational context is gaining more and more momentum, company managers are faced with the necessity of developing and implementing more suitable human resource strategies. One specific course which needs to be followed by these strategies is that of increasing the retention rates and the employees' loyalty to the firm. This endeavor can be successfully completed through the creation of an employee retention balanced scorecard. This scorecard has to be developed in accordance with the specific needs of the respective organization, but it is advisable for it to contain at least the following nine components: adequate processes of staffing needs assessment, candidate selection and employee hiring; employee integration within the organizational climate; training programs; financial incentives; leadership; employee future stability; talent management and promotions and finally, several non-financial incentives. As a final lesson, it should be noted that the employee retention strategies should not be renounced in times of economic recession -- like the current economic crisis -- but they should be readjusted to better answer to emergent challenges.

References:

2010, Balanced Scorecard Basics, Balanced Scorecard Institute, http://www.balancedscorecard.org/bscresources/aboutthebalancedscorecard/tabid/55/default.aspx last accessed on June 30, 2010

2009: Economic Crisis or Opportunity? Talent Management, http://www.talentmgt.com/departments/dashboard/2009/February/861/index.php last accessed on June 30, 2010

Transformational Leadership, Changing Minds,….....