Category: HR Scorecard Metrics

232 key performance indicators for HR in Balanced Scorecard Toolkit for HR Learn about HR estimation for other businesses

The importance of HR management can be hardly overappreciated.  The recent economic meltdown showed that qualified personnel is the most valuable intangible asset for any company.  Business may lose capital, real estate, money and customers.  But as long as company has loyal and professional employees you have chances for survival.

HR departments are working in all major companies, especially large ones.  Human resource management approaches are more or less all the same throughout different businesses.  However, different business areas required different approaches, taking into account specific nature of the work, organization structure and company strategic goals.

As any activity in the company, human resource management efficiency should be constantly evaluated.  Balanced scorecard is an ideal tool to fulfill this task.  This article focuses on implementation of balanced scorecard in evaluation of HR efficiency in accounting.

First and foremost, it should be said that accounting is pretty much about reporting on company financially activity.  For this reason, accountants and finance specialists should be very attentive when keeping financial documentation.  When implementing balanced scorecard in HR evaluation for accounting business the following indicators are recommended.

1. Error free documentation.  Any minor mistake in financial and accounting reports may cause serious problems for a company.  Even if this mistake concerns a few dollars it will be impossible to submit such a report to controlling government or taxation bodies, say apart of mistakes in hundreds and thousands of dollars.  HR department should track the rate of error free documentation and encourage accountants and finance specialists to lower it.  Financial reports free of mistakes will also improve company image in the eyes of government officials and representatives of taxation offices.  This indicator may be measured once a month, quarter or a year, depending on what kinds of reports are submitted.
2. Employee loyalty.  Accountants and finance specialists have access to sensitive and confidential information about company transactions.  This information may be used a cane as the company by competitors.  So, it is very important to have loyal and devoted accountants and finance specialists who love working for the company and who will never use this information with evil intentions.  It has been proved that managers and finance specialists loyal to a company have the most loyal customers, which is always good for a company.  It is better for a company to create suitable working condition to improve employee loyalty than to suffer enormous losses due to loss of confidential information.
3. Invoice accuracy.  Most businesses either sell products or services, and invoices are used in prepayment procedure.  The wrong invoice would cause the wrong payment.  It will be quite inconvenient to cancel payment and resend the amended invoice.  This takes time and possibly money.  That’s why it is imperative to make out invoices so that the company timely receives money for their products or services.  Invoice accuracy can be measured, for example, once a quarter.  Employees should be encouraged and motivated to keep invoice accuracy at the highest possible level.

Of course, this is not the full list of key performance indicators in accounting HR.  But these KPIs can be effectively used by HR managers and large companies.

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Please note: HR scorecards are also available as a single products in our commercial library of KPIs.

The full version includes:

• 15 HR Balanced Scorecards in total 232 KPIs for HR delivered as .BSC and Excel;
• BSC for HR – 29 pages e-book delivered as PDF file;
• HR life-cycle – 26 pages e-book delivered as PDF file;
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The BSC Toolkit for BSC includes:

• 15 HR Balanced Scorecards delivered as .BSC and Excel files, balanced scorecards for various areas of HR including KPIs for recruitment, staffing, training, staff development, employees turnover, talent management, motivation, retention;
• Each scorecard includes 12-16 key performance indicators, in total 232 key performance indicators for HR.
• Download the evaluation version of the scorecard.

General HR

• HR Balanced Scorecard [16 key performance indicators]. HR Balanced Scorecard helps to measure and improve performance of HR department.
• HR Hire Balanced Scorecard [18 key performance indicators]. HR Hire scorecard allows to measure and control performance with scorecard indicators.
• Training Balanced Scorecard [18 key performance indicators]. One can make use of BSC i.e. Balanced Scorecard to align the training sessions more usefully.
• Retirement Scorecard [16 key performance indicators]. KPIs in Retirement process takes into consideration both financial and non-financial measures to make sure that the overall process is initiated with ease.

Management

• HR Outsourcing scorecard [15 key performance indicators]. Implementing a metrics program on both ends of the outsourcing process is crucial because outsourcing has a relatively high error rate during its early years..
• Leadership scorecard [17 key performance indicators].In leadership KPIs can be categorized under People Initiatives, Collaboration Initiatives, Broad Organizational Initiatives and Professional Success Indicators.
• Motivation scorecard [17 key performance indicators]. KPIs in Motivation are as important as in any other organizational aspect and can be seen from four perspective- Growth and Development, Compensation, Non-Monetary Compensation and Intrinsic Factors.

Productivity

• Time management scorecard [14 key performance indicators].Time management skills helps a person identify and focus on the activities that provide the greatest returns. Investing in these activities will not only save personal time, but will help a person work smarter, not harder..
• Work Productivity Scorecard [13 key performance indicators].The goal of your company’s staff should be a singular product that everyone can work towards on an equal basis, in order to efficiently, and productively manage internal affairs so that the best possible outcome is consistently achieved.

Talent Management

• Innovations Scorecard [11 key performance indicators].Measure and improve performance with Innovations indicators and metrics

Training

• Certification Scorecard [16 key performance indicators].With the help of financial and non-financial measures such as KPIs, the organizations are able to identify the key success factors to develop a potential edge over others in the industry.
• Education scorecard [14 key performance indicators].Quantitative indicators can be used as a foundation for evidence-based policy in education. This requires the careful use of statistical methods and a set of designed comparisons.
• Training and Development Scorecard [15 key performance indicators]. Measure and improve performance with HR Training indicators and metrics.

Compensation

• Awards Scorecard [16 key performance indicators]. Assessing the performance of employees in a right manner requires an appropriate framework which helps to assess the performance from various aspects.

Finance

• HR costing and accounting scorecard [16 key performance indicators]. Proper monitoring of expenditures incurred and investments made in one of the valuable assets of the organization, i.e. human resources, and its outcomes is very essential from organization’s viewpoint as well as from the customer’s perspective.

Measure and improve Human Resource (HR) performance with HR Balanced Scorecard for Excel

How to measure, control and improve the performance of HR department with Excel HR Balanced Scorecard.

• Download trial version of HR Scorecard Metrics
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• Check HR Toolkit: 9 HR KPI Metrics for Excel
  

This scorecard has some key metrics that will help with measure and control of the performance of HR department. Integrate scorecard into the Human Resources Management (HRM) process by making it a part of your Human Resources Information System (HRIS) system.

HR Scorecard KPI is a great way to control how the HR department is performing in your company. Managers from HR department can learn their specific from indicators, while CEO can focus on global performance indicators, such as response quality and response time.

• Download trial version of HR Scorecard Metrics
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• Check HR Toolkit: 9 HR KPI Metrics for Excel

HR Scorecard Screenshots

Metrics for HR Measurement. This is the actual scorecard with HR Metrics and performance indicators. The performance indicators include: “Cost per Hire”, “Turnover Cost”, “Turnover Rate”, “Time to fill”, “Length of employment”.

What is the most important thing for any company or business?  Or what is the supreme value for business?  Many business owners mistakenly think that their businesses are offices, equipment, production facilities, means of transportation and of course money.  But they tend to forget about one most important thing.  Above all, a company is that people who work there.  Even having huge Financial Resources and making investments will not help unless the company has a well trained and efficient personnel.

Moreover, employees should also understand strategic mission of the company and be aware of their own contribution to this vision and implementation of strategic goals.  For this reason, most major companies have a special human resource department.  The problem is that human resource department does not earn money as it does not produce anything or sell products or services.  The key goal of HR Dept is hiring and educating employees for the company.

If a human resource department does not work the way it should work the company may suffer losses.  Moreover, if HR department fails to find the best professionals in the particular area or fails to keep a such professionals in the company, such a business may suffer losses.  That’s why performance of HR department needs to be evaluated.  For this a reason use of balanced scorecard system is highly recommended.

Balanced scorecard is business performance evaluation tool that measures key performance indicators in order to approach company to reaching of strategic goals.  Balanced scorecard works in four perspectives: financial, customer, internal processes, learning and growth.  If we’re talking about the HR department then the last two perspectives would be relevant here.

In other words, HR department needs to make sure that it spends the minimum amount of money to find and hire the best professional and then to training to improve his offer professional level.  Thus, HR metrics includes the following KPIs (key performance indicators).

Cost per hire. This is a very important indicator which shows the amount of money HR Dept spends to find and employed a person.  Advertising costs, headhunting, agent’s fees are included.

Employment time. This is the average amount of time one employee works for the company.  If this indicator is too low that means that people are unwilling to work for a company which signals about certain problems in their organization climate.

Time to fill.  This is the amount of time HR Dept needs to fill a vacant position.

Introduction

Human Resource (HR) department is such a decisive section for any industry or association that performs a range of roles for example staffing and assortment of brilliant staff, appraisal of performance, career development, redundancy, etc. It is time and again said that productivity of an association depends on the dynamic and vibrant role of HR department. Therefore the Human Resource (HR) managers have to take advantage of latest tools and technologies in an attempt to improve the efficacy of HR department effortlessly. Among these tools and technologies, HR scorecard comes in first as a result of its adaptability and permanence.

What IS HR Scorecard?

“The HR scorecard metrics are the capacity tools that are generally used and put into practice in order to evaluate the activities and performance of HR department capably”.

Why Human Resources Management Is Different From Others Fields

These days HR scorecard metrics are considered the most noteworthy ways to boost the HR efficacy and accomplish corporate goals in a greatest way. One of the notable aspects of HR scorecard system is that it would provide utmost solutions to the human resources managers right away. Thus, it is called the best ever method to enhance the HR performance. There are a number of important traits of HR scorecard metrics. Read below:

• Cost effectiveness
• Matchlessness
• Adaptability
• Convenience
• Durability and Longevity
• Efficiency and Productivity

Top Ways To Enhance HR Performance and Efficiency

Due to elasticity and cost effectiveness of HR scorecard system, it will provide you numerous pros. Read below:

1. First HR scorecard system will boost the focus of HR managers to execute their functions with commitment and enthusiasm.
2. Next hr scorecard system will encourage the human resource managers to get better their weak areas so that efficiency of the HR department could be increased considerably.
3. With the aid of hr scorecards metrics, the HR managers can evaluate the performance of the company’s recruits both monthly as well as annually.
4. One of the most notable aspects of hr scorecard metrics is its translucent nature. It would present the guiding principles to human resource executives to weigh up the performance of each employee of the company in a comprehensive and sophisticated manner so that no vagueness could be remained eventually.

Final Word

In short, HR Scorecard method is the best ever way to get better HR performance in a short time. All you have to do is to fully comprehend this system so that you may be able to achieve corporate goals successfully.

The procedure of enrollment and assortment is not as easy as it may seem. Any person or human being who works for the HR department of any corporation can definitely bear out to this. This is for the reason that there is no eventual means of differentiating which of the candidates for a picky position or spot would be capable and competent on the occupation from the ones who would not be as good at his or her job.

If there were more or less authoritative systems of distinguishing such, possibly business entities and corporations worldwide would not go through such elevated turnover or yield rates. Therefore HR departments of any business organization internationally distinguish the basic needs and desires to come up with HR metrics.

The term HR metrics usually refers to corporate guidelines. These guidelines are able to be gauged and are frequently used by corporations to come up with gainful strategies and policies that are mainly intended for ensuring high-end performance and productivity of the labor force. The operational theory in human resource metrics is known as employee assessment.

Until or unless you have years and years of enrollment and assortment under your belt, it is in fact quite inflexible to evaluate the effectiveness of an interviewee right off the bat. Devoid of proper training involved in being a recruitment expert, it is nearly unfeasible to appraise applicants perfectly. There are even times when even the most knowledgeable and competent corporate human resources professionals would have difficulties and distresses going about with truthful measurement for this.

This is exactly why human resource metrics are considered necessary by any employees working for the human resources department of a business organization. With the appropriate HR metrics system, the HR department of the corporation can decide which of the candidates would be worth investing on. Collecting and developing a system of hr metrics for any corporation is something that can be accomplished effortlessly; that is, on condition that you have the appropriate guidelines to back you up.

More importantly, you have to draw together information and facts about your workers. Nevertheless, not all pieces of information would be used in developing hr metrics by any means. Getting rid of the dependable pieces of information and records from those which are not is the best here. But then, at what number must the assembling of human resource metrics be pegged? Another key element to bear in mind in the process of developing hr metrics is that all facets of the business and industry must be well thought-out.

Each department or section in any business organization always has costs to deal with. The human resources department is no exemption here. It is rather easy to presume that the HR department is without costs, since the expenditures here are not all that discernible, like that of the bookkeeping department, or the IT department. Still, the human resources department has various types of costs and expenditures that should be examined to make sure that there is optimistic return of investment (ROT) here. In spite of everything, the HR department is that division of the corporation that deals with the workers and the very human resources of the business organization.

Yes, it is trouble-free to imagine and yet state that the HR department does not in fact involve that many costs. This is for the reason that the department itself truly operates more on the setting. But if you in reality dwell on it, if you descend to the fundamental roles of the department, you will almost immediately notice the various costs that the HR department has to manage every single day.

For example, the sheer movement of appointing new people involves lots of costs and expenses by now. Let us put this in the perspective of call centers, for case. The call center business is presently overloaded with numerous stiff competitions these days.

One call center presents such a striking recompenses, incentives, bonuses, and benefits package. But do not sign that agreement without ado for the reason that there just might be another call center that can match, or even better, that offer! Thus, the HR department of any call center would have to come up with the most striking returns and benefits package and parcel to capture the eyes of promising employees.

Booking venues without a doubt involves several costs by now. Numerous factors would have to be measured, for instance, the proportion of people appointed over the span of the job fair, the proportion of these new hires that can make it to the probe status, plus the ones who can accomplish usual rank and grade after the trial period. All these factors and facets should be involved in the metrics scorecard.

As always, various types of metrics to be included here must be attached at a least amount. It would look as if rational and even alluring to take account of several features as metrics here, but don’t give in to the enticement. This is for the reason that it would barely perform the scrutiny and explanation of the obtained data and information all the more convoluted. Consequently, your HR costing metrics ought to be pegged at a least amount still.

All business entities existing in the corporate world have their own defined goals and objectives that they want to accomplish. These goals can both be temporary or long-standing, dependent on their nature in respect of how they will be obtained and how realistic their achievement will be. These corporations have their own divisions that hold dissimilar functions to accomplish diverse functions. And, consecutively, these sections have their own defined goals that they aspire to get done too. In fact, what department in your association does not go together with goals to carry out? Such is the circumstances of the HR department of any existing venture – and these HR goals need to be accomplished competently.

Nevertheless, one of the HR department’s most important goals is to take on the right set of people to execute the operations of the association in its entirety. Adding to this, the human resources department is accountable for the formation of a good-looking and rational recompense and paybacks package for its workers! This goes devoid of saying that the HR department needs to take a look at its state of yield and effectiveness in addition – to ensure if they are still operating in accordance with the needs of corporation itself.

So, how does the human resources department accomplish its goals? There are in point of fact quite a few ways to carry out this, but one proficient method is to build up the HR scorecard. Now, you of course must have heard about the balanced scorecard that has been making waves in the business surroundings. The archetypal scorecard holds metrics and quantifiable key performance indicators that you bring into play in measuring the existing performance of a fussy department. This yield and productivity is after that pitted against the expected performance that the corporation imagines for itself. Therefore, the corporation can afterward measure how advanced it is from where it wants to be at the moment and at some point.

So, what metrics and KPIs should you take advantage of then to help settle on how far along your HR department is in accomplishing its goals and objectives? These metrics will differ from one human resources department to another, certainly, given the information that the goals to be executed would diverge too. Still, it lends a hand to have moderately of harmony, to some extent. The effectiveness of HR department can be then improved and enhanced by implementing some of important HR metrics including workforce success, HR alignment, HR costs, etc.

The course of action of working with corporate employees involves: hire, education, management, retire. All the phases have to be processed vigilantly because they can fully transform your industry. For example, if you will have the finest method to take into service stuff, but it will be working bit by bit, then you will fall short. If your learning system will allow training everybody, but will not let checking the real performance produced by training processed, then you will be unsuccessful. If your preeminent people will retire, then you will be unable to find.

So, consequently it’s in point of fact of the essence to determine and manage all events involved into employee’s affiliation. People, who you work with, ought to comprehend what your goals are and how they would help to accomplish these objectives. This is the main factor of administering and controlling all the activities of the corporate sector.

Another line of attack is focusing on how someone’s job would affect the corporation. It’s understandable that though someone works in a Sales then he or she will have an effect on not only the monetary part of the industry by generating sales, but also all other parts of the business organization.

For example, sales person would be involved in entire business processes, for example education and knowledge sharing. This person would also work directly with clientele, so he or she will not just sale, but get a priceless feedback from shoppers of your products. These people would also help your corporation to nurture not just in terms of sales, but also in terms of improved business processes and company effectiveness.

So how is possible to gauge and control HR department at your corporation? The answer is very straightforward – you should build up some key indicators that would embody company business and then keep an eye on what is working well and what ought to be changed. There are lots of names for this method, for example KPIs and balanced scorecard. The result is having the obvious view of what is going to come about in corporation and how it would steam-line your business.

 What should be the gateway? In point of fact, I suppose you have by now had some imperative information for scorecard. For case in point, you have manuscript called “mission”, this is a universal definition of your ethics, you can a number of business goals, you have business procedures described and dignified. What you need at the moment is to draw together all this vital information into a trouble-free way to administer system, which will consider the significance of each metrics. This system (Balanced Scorecards or KPI) would help to handle and organize the effectiveness of your HR department.