How to Get the Most Out of HR Metrics
Proper and effective workforce management is not a simple job irrespective of the size of a company. That is exactly why the human resource department is that section, which fulfills nearly the most responsible functions in any organization. Its main task is not only to hire new employees, but also to make sure they are competent, experienced and knowledgeable enough to qualify for a vacant position. The human resource department handles these processes almost every day, but this does not mean that they do that successfully. Unfortunately, even those HR experts that have years of training and experience cannot differentiate between skillful applicants and those that lack experience right from the start. Furthermore, the growth of a company often results in the increased need for a more thorough and improved measurement system that will make it possible for the HR section to assess the workforce in the best way.
One of the most widespread and popular measurement systems applied nowadays is the human resource scorecard. Though it may be used by other company departments as well, it has a truly impressive impact upon the work of the HR department. Its application implies that HR specialists use the most reasonable and reliable method of assessing and defining the efforts and value of all employees. With HR metrics, the process of management becomes easier, thus resulting in the maintenance of a stable and powerful company.
Establishing the HR balanced scorecard system, however, is much more complicated that lots of managers may think. It always takes time and money, but if you are lucky to do everything faultlessly, the result will certainly exceed your expectations. The whole process starts with the identification of those metrics that are crucial for your business. This involves a series of reviews and checkups required to point out suitable indicators. The main task of HR specialists at this stage is to research the current workforce status and decide whether the amount of hired employees is enough to contribute to the expected company growth. According to the obtained results (either negative or positive), the HR department will define a reasonable objective in establishing the scorecard.
Having decided upon all the priorities the company has, the human resource department proceeds to putting metrics into practice. The most widely implemented of them are the turnover rate, cost per hire, turnover cost, time to fill etc. Keep in mind that the clearer your goal is – the more successful the HR measurement process will be!