Cross-functional HR unit is essential for the streamlining of processes and applicable skills within an organization.
Cross-functional involvement in HR activities provides a greater understanding of HR services such as recruiting, training and performance management.
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As new trends in business operations take hold, the need for a redefinition in HR function within an organization seems imminent. HR departments are becoming more involved in strategic decision-making, which translates into enhanced attunement between workers’ and organizations’ needs and workers’ work-life balance. HR is turning into a cross-functional unit with HR specialists, managers from various departments of the organization, and HR employees responsible for the administrative part of the job.
Cross-functional HR teams provide essential information for the decision making process. Although in isolation, none of HR figures are very strategic, they act as building blocks to create effective HR Balance Scorecard program. HR measurements are based on Transactional Metrics, HR Operational Metrics and Workforce Effectiveness Metrics.
Transactional Metrics are meant to quantify various HR activities, for example, head count, number of training hours, payroll, number of performance reviews submitted, as well as active head count. HR Operational Metrics are used to monitor HR performance in terms of employee satisfaction and process outcomes. These metrics include time to hire, talent retention and employee satisfaction with training programs. Workforce Effectiveness Metrics are based on transactional and HR operational metrics as well as other business KPI (key performance indicators) outside the HR function. They collect essential information to support strategic decision making. Most common Workforce Effectiveness Metrics include total cost of turnover, business effect of transferring key accounts to the high sales performers, effect of a Six Sigma certification program on operational efficiency and the recognition of managers with sufficient training skills.
Although cross-functional HR management in an organization does not necessarily require a substantial physical restructuring, it provides numerous opportunities to initiate dramatic progress in organizational operations, HR department performance, and the increase in the levels of job satisfaction among employees. It is the key to lasting and increasing excellence in business operations.