Explain how an improvement in employee retention (a Learning and Growth measure) could flow through each of the balanced scorecard perspectives to result in improved financial performance.

Explain how an improvement in employee retention (a Learning and Growth measure) could flow through each of the balanced scorecard perspectives to result in improved financial performance.

 

Solution

The balance scorecard tool, devsied by Kaplan and Norton gives a more accurate measurement of a firm’s capabilities to create long term value by identifying the contributing drivers of this value. When we discuss about the employee retention contributor, it is actually one of the three long term value creators within any