HR Metrics and Their Impact on Organizations

The assignment discusses three common HR metrics - Diversity, Engagement, and Workers' Compensation Incident Rate - and their significance in adding value to organizations. The document focuses on PepsiCo, explaining how these metrics have helped the company attract potential candidates, drive innovation, strengthen its reputation, and improve employee engagement and safety performance. It highlights the importance of creating a diverse and inclusive workplace culture, fostering employee engagement through Employee Resource Groups (ERGs), and implementing EHS initiatives to achieve world-class health and safety performance.

Metrics are not neutral. The choice of metrics conveys values, priorities and a strategic
framework. Moreover, metrics generally reflect an implicit constituency for the strategy
process. Thus, whether intentional or unintentional, the choice of HR metrics sends signals
that will affect the decisions of these constituents.
Now here we have chosen three common metrics that will add value to all these 3
organisations. These metrics are –
 Diversity
 Engagement
 Workers’ compensation incident rate
Now, further I will explain how these metrics adds valve to PEPSICO.
(a) DIVERSITY
Understanding how to meet the needs of such a diverse cross section of global
consumers requires a diverse and talented workforce.
Diversity is multi-dimensional, crossing age, ethnicity, faith, sexual orientation and
thought. As such, we strive to create a workplace in which associates can “bring their
whole selves to work” and learn and grow from a mix of abilities and perspectives.
This inclusive workplace culture encourages individuals to express their ideas, which,
in turn, fosters creativity and fuels innovation.
This metrics has helped the organisation to attract potential candidates, drive
innovation, strengthen our reputation and encourage engagement with our internal and
external communities worldwide. Also it has helped to engage on topics such as
empowering and advancing women, people of colour, people with different abilities
and youth around the world.
(b) ENGAGEMENT
An engaged workforce is a productive workforce. Engagement might be the most
important ‘soft’ HR outcome. People who like their job and who are proud of their
company are generally more engaged, even if the work environment is stressful and
pressure is high. Engaged employees perform better and are more likely to perceive
stress as an exciting challenge, not as a burden. Additionally, team engagement is an
important metric for a team manager’s success.
PepsiCo’s Employee Resource Groups (ERGs) provide opportunities for connection
and support for associates while serving as an important resource for the company.
ERGs are strategic business partners committed to driving an engaged culture, while
also fostering innovation and growth. Our active ERGs play an important role in
driving employee engagement opportunities.
(c) WORKERS’ COMPENSATION INCIDENT RATE
It is defined as the number of work related injuries per 100 full time workers during a
one year period.

PepsiCo rolled out a global EHS information system called myEHS. The system,
powered by Enablon software, allows us to record and track incidents in real time,
conduct audits on mobile devices and tablets, automate our metric reporting, track
corrective and preventative actions, share safety alerts and best practices, and set
performance goals and objectives. With the help of these EHS initiatives, we aim to
achieve world-class health and safety performance. This reduced the incident rate
across PepsiCo gradually.