Non-Financial Performance Measures and Frameworks

Non-financial performance measures form the subject of this video, which is produced for the 5CO02 Evidence-based Practice unit at CIPD Level 5 and addresses Assessment Criterion 3.1. The video covers stakeholder benefits and feedback, customer satisfaction, legal and environmental compliance, and sector ratings and benchmarks as distinct categories of non-financial measurement. Within those categories, it examines specific mechanisms such as Net Promoter Score, customer effort scores, complaints monitoring, engagement surveys, pulse checks, exit interviews, tribunal case tracking, regulatory audit findings, quality accreditations, and best employer rankings. These are treated not in isolation but as components of a broader organisational measurement system that sits alongside financial indicators such as revenue, profit and return on investment.

A significant portion of the video is devoted to the Balanced Scorecard, the framework developed by Robert Kaplan and David Norton, which the video positions as a response to the limitations of purely financial measurement. The four perspectives of the Balanced Scorecard — Financial, Customer, Internal Process, and Learning and Growth — are all addressed, with particular attention to how they relate to one another through cause-and-effect logic. The Learning and Growth perspective receives specific treatment in relation to people practice, and the video draws out the chain that links workforce investment through internal processes and customer outcomes to financial results.

The video also addresses the relationship between employee engagement and customer satisfaction as a strand of evidence relevant to people professionals making the case for HR investment. Compliance measurement is treated as a substantive performance category in its own right, covering employment law, health and safety, data protection, equality legislation, and environmental standards, alongside the metrics used to monitor them. Sector ratings and external benchmarks are examined as tools for comparison with peer organisations and as sources of evidence for internal business cases, rounding out the video's treatment of how non-financial performance can be appraised systematically.