Importance of HR BSC in terms of goals alignment

HR management is a subtle thing since employees need to work with the same employees, making sure they are productive, well educated and loyal to the company. Since a company spends money to hire employees it should make sure the employees generate profits. This is the way a modern business works. An efficient human resource department is more than just a bunch of employees who hire personnel and organize training sessions. No way! An effective HR department is a business unit that focuses on company goals and thinks how own performance can help achieve them. The goal of hiring personnel is not just to hire. Every employee should have a mission in the company and own personal goals. Moreover, these goals need to be aligned with company strategy. HR department is occupied with such tasks. Of course, it is necessary to measure business unit performance to make sure it is moving in the right direction. Balanced Scorecard is a widely recommended tool in this sense.

Major HR goals
Major HR goals

BSC will help align strategies and goals. For example, if it becomes profitable for a HR department to hire inexperienced employees because of money savings, such policy may be harmful for the company that expects the best performance from personnel all the time. The same concerns training. HR department may organize seemingly interesting and useful trainings while in fact, they will have no effect on company performance, growth of sales and revenues. Thus, BSC is mainly a tool that both measures HR performance and checks alignment of HR goals with those of the entire company.

Functions of HR BSC
Functions of HR BSC

Very often, companies conduct business trainings just because they have to. With BSC and namely it education and growth perspective, company top managements and HR managers will actually see how these trainings work in the short and long term. Simply by measuring employees satisfaction with trainings, it is possible to evaluate their efficiency (employees are unlikely to use knowledge and skills obtained at seminars and training sessions that they do not like).

Much depends on how employees themselves evaluate work of HR department. If they think that HR managers exercise the wrong policies and have the wrong attitude, even the brightest HR ideas will simply fail.

BSC evaluated KPIs in complex, and thus all indicators are interrelated. It is easy to see which indicator affect what goals. After all, BSC is implemented to benefit the entire company, including HR department.