How to build an effective HR BSC
HR evaluation methods and approaches differ in various industries. One of the most common mistakes is application of the same HR assessment methods in different companies that operate in different markets and have different problems, challenges, strengths and weaknesses. Obviously, every company has own peculiarities and internal problems. Thus, use of someone else’s experience cam be the wrong decision to make.
Personnel evaluation with BSC is individual for every company. KPIs are chosen according to strategy and goals of the company. That is why HR measures picked to IT industry can be hardly helpful for agriculture or consumer electronics. For this reason use of universal HR measures is not recommended. Sure thing, it is quite possible to use a few HR KPIs, however one needs to take into account lots of factors, namely:
- Strategic goals, including goals in HR. For example, if in agriculture there are lots of part time and seasonal workers, IT industry is interested in retention of qualified personnel possessing experience and priceless knowledge. That is why approaches to HR evaluation will be fairly different. If in the first case the company may be interested in cutting expenses, the IT industry tolerates to savings on experienced programmers, team leaders etc.
- Role of employees initiatives and independence in the company. Some companies are not interested in analyzing initiatives from employees (monotonous works etc) while others can earn millions of dollars by implementing employees ideas. Thus, in the first case HR department should not put too much weight to such KPI as employees satisfaction (everything in moderation of course). Employees in financial and IT organizations should be able to express their own thoughts as to possible improvements in company procedures.
- Impact of internal discipline on company performance. If such companies as Google create the best working conditions for its employees, many companies especially Asian instill strict discipline. One should see how different approaches to personnel management change employees performance. For example, employee lateness may have no impact on efficiency of personnel in one company while in a different organization it will have dreadful consequences. That is why it is important to assign the right weights for chosen KPIs.
- Physical vs mental labor. Of course, people who work hard need to feel that their work is valued. That is why employees satisfaction is important for enterprises with hard working conditions.
























