Scorecard Metrics for HR

Now let’s talk about some useful HR metrics for large organizations, or criteria for measuring HR performance. Knowing about these metrics would help managers more accurately gauge their HR performance.

Management has grown to become more and more strategic and based on actual results and observations. To this end, the concept of metrics has been developed and applied with great success in many companies and organizations. Metrics, sometimes called measures, refers to particular standards which are used to gauge and communicate progress on different aspects of the business. These standards are quantitative, more often than not, and as such conveyed in numbers and percentages.

The adoption of this concept of metrics has helped to make managing an organization more objective and less vague. These metrics offer a structured and well-defined way of observing the progress and development of the organization’s various aspects. Decisions then become better-informed than before.

Not all metrics are going to be as useful for all organizations, however. Here we make a list of some of the most powerful HR metrics that are relatively easy to understand and implement.

First of all, the very best indicator of successful HR performance is workforce productivity. Productivity would not mean the same thing in different companies (and even in different departments within companies), but in any case there are already established measures of productivity that could be used. Some of the metrics to describe workforce productivity include the percentage improvement in workforce productivity and the currency value of this year’s increase in workforce productivity. Managers would of course seek to maximize these metrics.

Another important aspect of HR to measure is what is known as employee engagement. This refers to the relationship between employees and the management. High employee engagement would mean that employees tend to value their employment, and hence stay with the company as productive members. The metrics in this category take the form of employee survey results that can gauge employee satisfaction. For instance, the percentage of employees who look forward to coming to work is a useful metric, as is the percentage that feels comfortable with current management practices.

Recruitment is, of course, one of the main responsibilities of any HR department. To assess the effectiveness of recruiting, these simple metrics may be used. One is the average performance appraisal score of newly hired employees, which may then be compared to preceding years’ results for the same position. Another is management satisfaction with these new employees, determined through surveys. The turnover rate of these new employees within the first year is also usually a good metric to take note of.

Finally, employee retention is another aspect of the business that HR should be well aware of. Useful metrics in this category include a performance-based turnover metric, especially in important positions. This is a weighted measure of turnover, with better performers being ranked as more important that worse performers. Management satisfaction with HR efforts with regards to employee retention, determined through surveys, may also be a somewhat useful metric to monitor.

These are just some of the simpler and more important metrics to consider when gauging HR performance. More sophisticated HR metrics are available and may also help, but implementing even just these simple ones is sure to make a big difference.

If you want to learn how to accomplish success, knowing how to stay motivated is very important. Apply these 10 easy steps to your life and witness as the positive changes start to present themselves.

1. Get organized – A true winner needs to know his goals and always plans ahead. This is only possible if every area of your life is organized. Be it the financial, business or personal branch of your life, organization permits for better planning and in return better results.

2. Find your path – One of the most distressing mistakes many people commit at least once in their lives is, desiring to be like someone else. You are a unique individual and so is everyone else, find your path and succeed at something your good at.

3. Be the boss – When talking about being the boss this is meant to be understood in a figurative form. Be the boss of your life and learn to take control over your decisions.

4. Tomorrow things will be better – Tomorrow things will be better, that is a fact. If you didn’t prevail today, tomorrow will be better and success is on its way. It is a known fact that most people give up when success was only a few steps away. Don’t be like them.

5. Save money – People don’t get motivated by spending money, actually it works quite the opposite. When saving money you are in reality building something great that rewords you immediately. Money gives comfort and security which in return will motivate you to work harder.

6. Learn from your mistakes – Although learning from mistakes might seem like something not really important to self motivation, this couldn’t be any further from the truth. Failing is normal, everyone fails. What most people don’t know is how to learn from their mistakes and carry on motivated for the second round.

7. Others can help – Most people don’t like to ask for help and end up failing because of their stubbornness. No one knows everything and you will notice that most great men have a few greater men behind them to give advice. Talking to other people about certain problems will help in keeping you motivated and on track.

8. Small victories are important – Don’t be scared to celebrate small victories. Any victory is important since it brings you closer to the ultimate goal. Celebrating and acknowledging these victories gives you strength and much needed motivation.

9. The past isn’t the future – What happen then happen for a reason and that doesn’t automatically mean you’re going to fail. Stay focused in the future and all the wonderful things that it has in store for you.

10. You are special and a winner – This is one of the most important rules you should always remember, so I saved it for last. You are special and a winner, winners are successful. Victory, success and winning are big words that most people fear, you shouldn’t be one of those unfortunate individuals. You are a winner and victory is possible.

It is my hope that these ten simple rules will aid you in the accomplishing o new and exciting goals. Remember that change starts within, you are the only one that can revolutionize the course of your life.

A short video about how to manage interview and ask/answer hard questions, such as talking about your weaknesses:

Below is a video about what HR manager and Human Resource in general must be (in theory):

This article discusses some of the most useful HR KPI, or key performance indicators. These are measurable quantities which help to gauge how well the organization is performing, and can help to guide management decisions.

Management has become more and more fact-based, over the years, as managers saw the benefits of having accurate and relevant information on which to base their decisions. Hence the concept of KPIs or key performance indicators developed naturally as an extension and distillation of the fact-based management approach.

HR KPI would then refer to those indicators which look at the employees’ performance. These indicators would encompass the employees’ productivity, job satisfaction, initiative, work quality, teamwork, and so on. Looking at various KPIs would allow management to quickly and accurately gauge how the organization is doing, as a whole, and thus allow for insightful decisions and management choices.

HR KPI could also help the employees themselves to get a quantitative grasp on their performance and what aspects they need to improve upon. The consideration of these key performance indicators is basically just a way to keep track of the important aspects of organizational (as well as personal employee) performance. Employees could use these benchmarks to try and better their personal performance.

Groups and teams would also benefit from being able to look at and quantitatively measure not only individual member performance, but also their performance as a unit. This would enable the group to make adjustments both at the individual level as well as at the group level to further improve their performance (and hence their value to the company).

An awareness and understanding of these key performance indicators thus helps at almost every level of the company or organization. It becomes important to select the proper aspects of the organization to monitor, and the metrics or standards of measurement by which to gauge these aspects.

Some of the most important HR KPI’s are those related to workforce productivity. The exact meaning of productivity is of course dependent on the context of evaluation. Generally, the improvement of employee productivity over previous time periods is what is important to monitor and maintain. There is of course no absolute comparison for productivity, and this is why changes and improvements are what are measured.

Recruitment is another vital HR aspect to be aware of. Indicators here include comparisons between the average appraisal results of newly hired employees with the previous batch of hires. Better recruitment would of course result in hires that are better appraised than previous batches, and so on. An improving quality of new hires would result in better performing employees to fill the positions in the organization.

Employee retention is also another important aspect. Key performance indicators in this regard would consist of a weighted turnover rate. This rate could be weighted based on employee performance, with top performers being the weightiest. Lowering this turnover rate should be of high priority; any organization would want to keep its top performers within its ranks.

These are just some of the HR KPI’s that an organization manager could consider. By keeping track of these and other key performance indicators, management would be able to determine what decisions and adjustments need to be made.

This article discusses the basic concepts behind the balanced scorecard approach, especially in relation to HR management, and how scorecard design and implementation should be based on a sound strategic map.

The balanced scorecard represents a concise distillation of a useful strategic management concept. It was introduced in the nineties by Kaplan and Norton in response to the previously existing management approaches that they felt leaned too heavily towards the financial aspects of the business. They termed their new approach ‘balanced’ to emphasize that there are other aspects of any organization that need to be considered as well, if management is going to get the whole picture.

This approach can be termed fact-based management, where the gathering of accurate and relevant information becomes crucial. It is on the basis of this information that management could then make better decisions, both for the short term and the long term.

The balanced scorecard approach espouses the consideration of four basic perspectives. Each of these perspectives have their corresponding metrics, which are the standards by which performance can be measured quantitatively. By analyzing these measurements, improvement goals can then be set and attained quantitatively.

One of these of course is the financial perspective. It is here where expenses and revenues are considered carefully, as well as the flow of money within the organization itself. In HR, in particular, this would include looking at the ratios of hiring costs versus productivity, and so on. Traditionally this is the aspect that has received the most attention, since most businesses have the primary goal of making profits while minimizing costs. However, this is just one of the four aspects which the balanced scorecard approach considers.

Another important aspect is the customer perspective. Here, customer satisfaction, among other things, is important to measure. The quality of the relationships between the organization and its clients is considered here using the appropriate metrics such as the percentage of return clients, etc.

The third aspect that the balanced scorecard approach considers is the internal business process perspective. What this encompasses are (of course) the internal processes that the organization needs to excel at. HR departments would do well to look at such things as new employee accommodation, the ease of communication between offices and staff, and so on.

The last aspect is the learning and growth perspective. Here, the organization’s capability to grow and adapt is measured. What is important here is then the quality of training that employees receive, as well as an efficient communications network that would allow fast and effective reaction to any contingency.

A strategic map is simply the process of drawing connections between the various processes and entities within the organization. This is in harmony with looking at the organization and its workings using these four perspectives as suggested by the balanced scorecard approach. Using a strategic map, the most important and relevant metrics may be identified. Once these are identified, creating the balanced scorecard itself becomes easy.

Implementing the balanced scorecard would then consist of just gathering the necessary data to evaluate performance using the selected metrics. These results are then put together in a weighted sum, balanced by the relative importance of each metric with respect to each other.

The balanced HR scorecard approach can help not only HR management, but any type of management to get a clearer picture of the organization. This then turns to the ability to translate this information into positive action, improving performance across the board.

HR Training Scorecard designed to help measuring general education and training performance. This metric includes such metric indicators as “Training Satisfaction”, “Training Targeting”, “Training Accessibility”, “Time efficiency”, “Behavior Progress”, “Diversity”.

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The training scorecard allows to evaluate the training program according to the current corporate goals and suggest the best ways to improve stuff education and training performance.

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HR Hire Scorecard will help to measure quantitative and qualitative indicators of HR Hire process, which include “Accession rate”, “Staffing yield”, “Referral hires”, “Efficiency of new hires”, “Retention rate”, “Staffing efficiency ratio” and some other.

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Also it focuses on internal hire-related processes, such as interview, suggesting “Interview-screen ratio”, “Hire-Interview ratio”, “Start/offer ratio”, “Diversity of hires” metrics.

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HR Scorecard was designed as a general metric framework for estimation of any HR-related issues. This set of metrics will provide common ideas about what indicators might be used to measure human resource performance. The four groups of metrics include “Employee turnover”, “Recruiting”, “Retention”, “Training and Development” groups. Each group has some basic metrics, which can be extended with more details.

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The “Employee Turnover” group includes financial indicators associated with HR: “Cost per Hire”, “Turnover Cost”, as well as metrics which helps to basically estimate the HR process: “Turnover Rate”, “Time to Fill”, “Length of Employment”. Metrics for recruiting framework are “Vacant Period”, “New Hires Performance Appraisal”, “Turnover Rates of New Hires”.

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Please, download and try trial version of HR Scorecard before placing order.

Balanced Scorecard Designer is a software tool by AKS-Labs, which helps to design performance indicators and metrics.

The main window of the program contains three parts: metric tree, metric details and metric settings. Each part allows to fine tune the scorecard to fit company’s needs.

The scorecard is a tree of metric, where each metric has its own name, description and relative weight. These indicators might be grouped. Each group might contain any number of indicators, but it’s recommended to keep the number of indicators on the one level about 2-4. The group can also be a container for any other group, so if needed you can design a scorecard with any level of details.

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Metric’s Details

The indicators details part of the window allows changing indicator name and adding description. Typically, description contains information on how to measure the progress within this indicator.

The weight value specifies the relative weight of the metric indicator. The weight should be between 1 and 10. The sum of weights of all metrics at the same level must be 10.

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Metric’s settings

The third part of the window is metric’s settings. User can specify the optimization direction, e.g. if the current value should be increased or decreased to achieve target results. Also, in metric settings user can specify the scale on which the data is calculated, for instance it might be [-5…5] scale or [10,01 … 10,04] scale. The measurement units might be percents or any other units.

Once the scorecard was designed it could be saved for future use or it can be exported in Excel file, which is very useful when scorecard need to be integrated with other data source.

There are some other industry default features that make software easy to use. You can copy and paste metrics, you can undo and redo changes; you can move metrics or export to other programs.

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