HR Metrics: Which Are the Good Ones?
It is hardly a secret that each company considers the processes of personnel recruitment and retention important and highly responsible. However, they are not quite easy and therefore there are special departments that are concerned with these issues. Human resource departments perform vital functions in each organization, because their work is closely connected with further productivity and profitability of the whole company. Though there are no measures that will be 100 % effective in performing the selection of employees, there are still measures that can be undertaken to maximize chances for success. One of such systems is known and the balanced scorecard system, which uses diverse metrics to evaluate the performance of the whole HR department as well as those steps they make to choose qualified and knowledgeable applicants for vacant positions.
Unfortunately, it is not always easy to choose the most suitable metrics for your business, because some of them may not be useful for your company at a certain period of time. That is why there is a need to subdivide all metrics into those that work better for your organization and those, which may prove to be useless. So, how it is possible to differentiate between good and ineffective human resource KPIs? To start with, the best indicators are those that are aligned with the strategic mission and business objectives of your company. In other words, they should contribute to the development of your organization with regard to the goals you have defined in advance. Another characteristic feature of good HR metrics is that they should be well-defined. It means that managers of a company should be able to explain the essence and importance of each metric they are going to implement as well as to know what data sources to use in the process of its development. Furthermore, human resource metrics should be chosen and introduced on time in order to show the current condition of a company and the potential productivity of its personnel. Finally, the number of KPIs you are planning to implement should not exceed 10 metrics. It has been proven that the more indicators an organization tends to apply – the less chances to perform the productivity analysis they will have.
Experts admit that it is not that complicated to find human resource metrics in general. What causes more problems is the ability to define the most useful and crucial of them and process them on time. So, the more proficient the HR department of your company is – the more fruitful and productive the whole system will prove to be.