The HR Balanced Scorecard helps HR professionals manage their strategic responsibilities more effectively.
The basis of a value-creating HR strategy is a management infrastructure that comprehends and is able to implement the company’s strategy.
The Balanced Scorecard is a powerful tool which emphasizes the importance of measuring organizational performance from the perspective of strategic implementation, rather than relying solely on financial outcome. The Balanced Scorecard methodology helps the company’s management assess important process measures and communicate the company’s performance based on these criteria to the employees, encouraging the active participation of the entire organization in the strategy implementation process.
In order to integrate HR into a business performance measurement system, the managers must determine the points of intersection (HR deliverables) between the human resources and the company’s strategy implementation plan. The HR deliverables are categorized into two groups, the performance drivers and the enablers. Performance drivers are core people-related assets such as employee productivity and satisfaction. Enablers reinforce these performance drivers. Each performance driver may have several enablers. For instance, if employee productivity is considered a performance driver, training and re-skilling are identified as an enabler.
HR scorecard measurement process is not a one-time event. It requires flexibility as well as continuous monitoring and re-thinking. HR professionals should regularly review the existing measures and analyze their impacts.
The benefits of HR Balanced Scorecard approach are: cost control and value creation opportunities, ongoing measurement of the leading indicators, assessment of HR contribution to the company’s strategy implementation, encouragement of flexibility and change.
Companies which need to create HR measurement strategy may use HR Balanced Scorecard Metrics Pack. This pack contains HR-related metrics which help evaluate leadership and motivation indicators and measure the performance of HR and HR management in the company. It includes 8 metrics solutions: HR, HR Hire, HR Training, Leadership, Motivation, HR Outsourcing, Awards, and Retirement. These Balanced Scorecard metrics are a useful tool to measure and control HR productivity as well as improve and manage HR-related business aspects.
- For more information of the HR Balanced Scorecard Metrics Pack, click here.