Let's Get to the Numbers

 

 
 
 
 
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THE GOODWELL METRICS

GoodWell metrics have been designed to be easy to understand, measure and report against.  The metrics are intended to reflect the minimum behavior deemed for companies to be humane in the world today.  We believe these metrics will be easy to attain for any well intentioned organization.The metrics are all binary in nature.  In order for an entity to become GoodWell Certified they must pass all 11 metrics.

 

11 METRICS


 

1.  eNPS > 0 - Often referred to as the one question you need to ask in order to measure Customer Satisfaction, the Net Promoter Score (NPS) is now being adapted to measure employee sentiment as well.  This metric requires a simple one question survey to be sent to all employees: On a scale of 0 to 10, how likely are you to recommend working at ___ to a friend or colleague?  The number on the scale that an employee selects is classified into one of the categories: Detractors (0-6), Neutral (7-8), and Promoters (9-10). Then take the number of Promoters minus the number of Detractors to get the number of Neutral.  For example, if a company has 10 employees, and surveyed with 5 Promoters, 3 Neutral, and 2 Detractors, that company would end up with an NPS of 30, calculated as follows: 50% Promoters (5/10) - 20% Detractors (2/10) = 30%. The eNPS score is always shown as a number, so that company has an eNPS of 30.  In order to be valid the survey must be completed by a simple majority of the employees. GoodWell companies are required to have a positive eNPS.  Data collections can a occur in a variety of ways - online survey tools tend to work best.         

2.  Total CEO (or highest paid executive) Compensation/ Average Compensation < 100 - This is the ratio of total CEO compensation relative to the average worker's pay.  GoodWell companies are required to keep this ratio under 100.  This means if the average worker makes $35,000 the CEO cannot make more than $3.5 million.  All forms of compensation are included in the calculation with the exception of Founders Stock, which is determined to be risk capital related to business creation and can only be issued once during company formation.

3.  Exec Team Compensation / Average Employee Compensation < 75 - Similar to the above metric, but brings in the entire executive team.  This measure is required to be under 75 for GoodWell certification.

4.  Average Female Compensation / Average Male Compensation by job function between .9 and 1.1 - This metric shows for the specific job function if men or women are on average paid more.  This ratio needs to be between .9 and 1.1 meaning there is a 10% tolerance in either direction.  This metric helps to ensure entities are gender neutral when it comes to performing the same work.  Length of tenure in the role (not tenure in the company) will be considered during the evaluation and may provide for an incremental discrepancy of up to 2.5% per year.  For example, if one Zoo Keeper has been in the role for 10 years and a new Zoo Keeper has just joined the organization the difference in salaries can be (10-0) x 2.5% = 25%.  + the 10% difference in the standard metric for a total of 35% difference.  Evaluate job function by location as well.  For example, an account manager in London and an account manager in Phnom Penh, Cambodia working at the same entity are paid respective to country economic conditions.  Factor in the compensation and number of employees working in the same job function per location, for each location; then average all of the locations' data together for the final ratio.   

5.  Average Segment Compensation / Average Compensation by Job Function between .9 and 1.1 -  This metric shows for the specific job function if any racial group is on average paid more.  This ratio needs to be between .9 and 1.1 meaning there is a 10% tolerance in either direction.  This metric helps to ensure entities are racially neutral when it comes to performing the same work.  Length of tenure in the role (not tenure in the company) will be considered during the evaluation and may provide for an incremental discrepancy of up to 2.5% per year.  For example, if one Zoo Keeper has been in the role for 10 years and a new Zoo Keeper has just joined the organization the difference in salaries can be (10-0) x 2.5% = 25%.  + the 10% difference in the standard metric for a total of 35% difference.  Evaluate job function by location as well.  For example, an account manager in London and an account manager in Phnom Penh, Cambodia working at the same entity are paid respective to country economic conditions.  Factor in the compensation and number of employees working in the same job function per location, for each location; then average all of the locations' data together for the final ratio.               

6.  Total Recordable Injuries Frequency < 10 per 200,000 hours - This is a common metric used by safety auditors to determine if the entity is providing a safe working environment.  In order for an entity to be GoodWell Certified this number must remain below 10.  This means that there will be less than 10 incidents per 200,000 hours worked that result in injury to a worker that keeps them from work all or part of the day following the incident.

7.  % of Underage Workers = 0 - % of workers under the age of 14 who work more than 15 hours per week.  In order to become GoodWell Certified this number must be 0.

8.  % of Part Time Workers < 20% - This metric determines if an entity uses part time employees in order to avoid paying full wages and benefits.  We recognize part time employees are valuable resources in order to manage fluctuations in demand, however, this should not be a major source of employment.  In order to attain GoodWell Certification this number must be below 20%.

9.  % of Employees Making Below Poverty Level Wages < 10% - This metric measures how many employees at the entity work full time and make below the poverty level for 4 people.  In the US this would mean someone working full time would be paid less than $12.12 per hour. This metric varies by country to accommodate differences in the cost of living.  We recognize that entry level jobs are an important part of the hiring and development process, so this number can be more than 0%, but should not be a large number which would indicate low pay is being used beyond entry level workers. In order to become GoodWell certified this number needs to be under 10%.

10.  Annualized Attrition Rate < 25% - Attrition rate is one of the most important indicators of a business's health and treatment of employees.  If employees are engaged, fulfilled and satisfied with their ability to grow and prosper, they will most likely remain engaged long term employees. Likewise if the company does a good job hiring and business planning there is usually little need to terminate employees.  As such an attrition rate below 25% should be easily attainable for well run and thoughtful businesses.  Employee retirement does not count toward the overall attrition rate.  

11.  % of Employees participating in benefits programs >50% - Benefits programs are designed for employees to ensure the business is taking care of it's most important assets.  As such a well designed benefits program will see very high levels of participation.  However, if benefits programs are designed to put most of the cost or operational burden on the employee, the adoption rate will suffer.