Scorecard Metrics for HR

Improving the HR functions is often a tough ask owing to the degree of myriad complexity and human elements that are built in to the process. A tool like a balance scorecard can go a long way in clearing the picture and introducing clarity and purpose in the HR team. Metrics such as HR hire and Motivation, Training etc serve as clear reference points for HR executives to plan their initiatives.

Implementing a BSC approach for HR functions requires a careful study of the issues at hand and the subsequent planning implementation process. Preliminary research and discussions should be followed up with suitable brain storming sessions to devise a strategy that is tailored to the specific organization.

The BSC strategy also needs to look at building transparency into the processes and remove elements of ambiguity. It should look for devising a performance and compensation system that rewards good performance and presents clear goals that employees can look to achieve. Last but not the least this case study also highlights the need of having a suitable feedback mechanism for addressing the grievances of employees and explores how a BSC approach can achieve the same by learning from their views. Learn more about best practices in HR with Balanced Scorecard.

HR Performance Manager Articles about HR balanced scorecard, best practices, case studies, kpi, metrics

How to measure and improve performance of your employees working in support department? Check online help desk and ticketing software by ESCON.

HR Performance Manager Uncategorized help desk, ticketing system

Employee Monitor by Refog company, estimate performance of you HR. Try it now! There are several solutions starting with REFOG Keylogger for personal usage, ending Refog Employee Monitor and other employees monitoring tools.

HR Performance Manager Articles employees, monitoring

Human Capital indicators provide an organization with an accurate profile of its workforce effectiveness.

Although Human Capital is a crucial asset of any organization, there are no generally accepted principles defining its real value, as well as common strategies to optimize its performance. Therefore, most organizations have to define and develop their own measures for managing HC performance using a limited amount of information.

• Buy a complete pack of HR Balanced Scorecard metrics now

The Human Capital expense is one of the most significant components of the profit and loss account in the organization. It can reach up to 30-50% of the total business costs. Besides, organizations have to optimize the expenses generated by the Human Capital, and to assess the impact of strategic decisions, not only on sales and marketing but also on the Human Capital. That is why objective measurements of the Human Capital are particularly valuable.

Human Capital measurements cover a wide range of aspects, including compensation and benefits, financial impact, productivity, HR function, absence ratios, resourcing, learning and development, and personnel structure. The core Human Capital measurement is the Human Capital Return on Investment (HC ROI). It is defined as Revenue minus Non-wage expenses, divided by Compensation and Benefit costs.

The Human Capital ROI should be considered as an added-value metric rather than a measure of productivity. Low HC ROI value usually indicates that the organization’s workforce structure is not efficient or the organization has inappropriate product offering or pricing strategy.

In today’s competitive environment, financial Balanced Scorecard should aim to integrate Human Capital metrics. These measurements, similarly to HR indicators, will have a demonstrable impact on business growth.

• Read more on ROI of HR department

HR Performance Manager HR Scorecard Metrics

Employee Scheduler is designed for small businesses and can be used for effective employee management.

HR managers responsible for scheduling employees understand just how complex and tedious this process can be. Scheduling too many hours leads to a decrease in the profit margin. On the other hand, scheduling insufficient hours has a negative effect on the customers.

• Download Employee Scheduler for Microsoft Excel free trial

• Buy Employee Scheduler for Microsoft Excel now

A simple and efficient solution for scheduling employees, Employee Scheduler for Microsoft Excel, helps HR managers organize hourly employees and keep track of the company’s labor costs as a percentage of sales. Employee Scheduler is an easy to use template that can be tailored for a particular business. The main benefits of this solution are:

• Producing weekly schedules for employees (plus the ability to schedule past midnight)

• Estimating employee wages on an hourly basis

• Calculating how many working hours should be scheduled, based upon the company’s profit targets

For most small businesses, managing labor costs is key to survival. Employee Scheduler is a very simple and easy way of controlling the company’s labor costs on the weekly employee schedule. It is completely customizable and is based on MS Excel or OpenOffice.

This spreadsheet solution is perfect for business owners and HR managers who have simple needs and who want an inexpensive tool to help them create schedules.

• Download Employee Shift Scheduler free trial

• Buy Employee Shift Scheduler now

Another affordable solution, Employee Shift Scheduler, provides simple templates for configuring working shifts and assigning them to a specific employee.

HR Performance Manager HR Notes

HR shared service centers help transform HR into a business-driven function focused on facilitating and supporting organizational change.

A growing number of organizations are looking at implementing shared services for HR. Shared service centers (SSC) provide HR services for various parts of the organization, including the provision of routine HR administration as well as additional HR services. They are service-focused, enabling their customers to specify the level and nature of the service.

• Learn how to create vision and mission maps for company from HR viewpoint.

The introduction of HR shared service centre is usually a part of a wider transformation of HR structure within the organization. The type of shared services will vary from one organization to another. The shared service centre can include the full service from routine administration in recruitment, payroll and training, or provide specialist HR information and advice on HR policy and practice.

HR shared service centers can be implemented in-house or outsourced to the third party providers. In practice, hybrid models are becoming more common. Shared service centers are usually proposed for the organization’s strategic reasons in order to improve the capability and effectiveness of HR function. While HR shared services provide “quantifiable” benefits in terms of cost reduction (through achieving economies of scale, the standardization of process, better management structures, etc.), the strategic benefits achievable from HR transformation are significantly more important.

Strategic benefits of HR shared services include sharing more relevant and accurate information across the organization (sharing HR best practice, leveraging HR expertise, pooling knowledge across different parts of the organization and different geographical regions), achieving greater structural flexibility, improving organizational learning, and freeing up HR from day-to-day routine enquiries.

The main drivers of HR shared services are Cost, Quality, and Organizational Change. HR shared service centers have been implemented by a number of high-profile organizations, such as IBM, Shell, Lloyds TSB and Royal Bank of Scotland.

HR Performance Manager Articles about HR

Cross-functional HR unit is essential for the streamlining of processes and applicable skills within an organization.

Cross-functional involvement in HR activities provides a greater understanding of HR services such as recruiting, training and performance management.

• For a complete HR Metrics solution, click here.

As new trends in business operations take hold, the need for a redefinition in HR function within an organization seems imminent. HR departments are becoming more involved in strategic decision-making, which translates into enhanced attunement between workers’ and organizations’ needs and workers’ work-life balance. HR is turning into a cross-functional unit with HR specialists, managers from various departments of the organization, and HR employees responsible for the administrative part of the job.

Cross-functional HR teams provide essential information for the decision making process. Although in isolation, none of HR figures are very strategic, they act as building blocks to create effective HR Balance Scorecard program. HR measurements are based on Transactional Metrics, HR Operational Metrics and Workforce Effectiveness Metrics.

Transactional Metrics are meant to quantify various HR activities, for example, head count, number of training hours, payroll, number of performance reviews submitted, as well as active head count. HR Operational Metrics are used to monitor HR performance in terms of employee satisfaction and process outcomes. These metrics include time to hire, talent retention and employee satisfaction with training programs. Workforce Effectiveness Metrics are based on transactional and HR operational metrics as well as other business KPI (key performance indicators) outside the HR function. They collect essential information to support strategic decision making. Most common Workforce Effectiveness Metrics include total cost of turnover, business effect of transferring key accounts to the high sales performers, effect of a Six Sigma certification program on operational efficiency and the recognition of managers with sufficient training skills.

Although cross-functional HR management in an organization does not necessarily require a substantial physical restructuring, it provides numerous opportunities to initiate dramatic progress in organizational operations, HR department performance, and the increase in the levels of job satisfaction among employees. It is the key to lasting and increasing excellence in business operations.

HR Performance Manager HR Scorecard Metrics

Consultants and owners of business-oriented web-sites will be interested in partnership program that is now available with BSC Designer.

With affiliate program that is now available for BSC Designer, it is possible to be affiliate and resell both - scorecards from commercial library and resell BSC Designer itself.

For more information about Balanced Scorecard Partnership check the partners section online.

HR Performance Manager Articles affiliate, hr, kpi, metrcs, reseller, scorecard

HR analytics software helps make strategic decisions with greater insight and accuracy.

Human Resources metrics have always been linked to other key performance indicators such as revenue and profitability. However, applying measurements systems, including Balanced Scorecard, to people management is always a challenging task.

• For more on HR KPI, click here.

HR is not usually viewed as a source for hard measures. In order to analyze the return on all workforce investments, such as recruiting, developing capabilities, compensation and directing behavior, HR function should understand the business challenges of its entire organization.

HR professionals must understand the organization’s business plans and the operational, financial and customer-facing goals they are expected to achieve. Then they should associate these goals with the existing workforce metrics.

In many cases, HR information is scattered, which leads to non-systematic hiring, training, performance management and compensation processes. Detailed HR measurement data is essential these days, as globalization, tight labor markets and an aging workforce are causing many businesses to more closely inspect the performance of their largest investment: the workforce whose compensation represents 60 percent to 70 percent of the general expenses.

New Business Intelligence technologies offer HR departments the ability to invest in Human Capital Management analytics solutions designed to yield the insights essential for making informed decisions on HR.

Business Intelligence allows HR departments to become a strategic asset within the organization. It helps boost the efficiency within the HR department and make key decisions around recruitment, planning, and budgeting to support the strategic goals.

Business Intelligence systems help HR professional access information from data warehouses and other sources, structure analyses to find areas of improvement, and communicate the results in a way that is convincing to others.

HR function in the organization is not limited by administrative issues. HR department should use a fact-based systematic approach to solve business problems and offer a longer-term viewpoint in order to adjust to environmental changes. The key task of the HR professional is to proactively produce solutions to strategic business issues facing the organization.

HR Performance Manager Articles about HR, HR Scorecard Metrics

KPI Name: Unemployment Balanced Scorecard Metrics

Related KPIs: Social Security

• Download Unemployment KPI trial version
• Buy Unemployment KPI full version

Customers also viewed: Financial Crisi

Sample reports:

Some reports were generated with Balanced Scorecard Designer for the Unemployment Balanced Scorecard Metrics KPI to show both – Balanced Scorecard Designer functionality and a part of KPI content:

• Check Overview KPI Report sample.
• Check Full HTML Scorecard Report sample.
• Check Diamond Style Report sample.

Balanced Scorecard Designer Screenshot:

The Balanced Scorecard Designer software was used to create this KPI.

Description by authors:

It goes without saying that unemployment is one of the greatest roadblocks in any economy’s growth path. Removal requires arranging substantial amount of funds for offering either the ‘immediate relief’ or ‘providing job to earn their living on own’. Social Services Organizations shoulder this responsibility by running schemes for various target groups of society that require employment. Various challenges standing in the way of such organizations make it necessary to structure a scorecard to draw all aspects ‘that matter’ together.

The perspectives that can serve the purpose relate to- Strategy, Finances, Internal Operations and Success Evaluation.
The indicators for Strategy Perspective are- Policy Alignment, Number of people who were provided employment: Total registered people, Target Groups, Percentage increase in full-time and part-time employed people.

Internal Operations can be had with KPIs like- Frequency of Surveys, Employment Time lag, Mismatch between ‘expectations’ and ‘reality’ and number of factors considered for deciding the pay scale.

Financial Perspective can be analyzed with indicators such as- Training Expenses Incurred, Number of funding sources, fund utilization ratio and Research Share.

Finally, the success assessment is possible with ‘Cost of Living meeting’ ratio, percentage increase in funds and number of registrations.

KPI in Excel – Screenshot:

HR Performance Manager HR Scorecard Metrics kpi, metrics, unemployment