There are plenty of aspects business owners should consider if they wish to have profitable and reputable companies. HR performance and its proper management belong to the most significant of them, since efficiency and productivity of this sector are always beneficial for any organization. It is not a secret that professionalism of the company’s employees is inevitably connected with the quality of services it provides. And this is what exactly the human resources department is responsible for. That is why much attention should be given to perfecting the performance of this branch.
The majority of businesses, however, face complications when it comes to improving the competency of the HR department. That is why they find it important to use balanced scorecard in this business unit. The thing is that this system involves diverse key performance indicators or KPIs, which are generally applied when there is a need to find out how well this particular sector (or any other business unit) is operating at the moment. All the obtained results are used for the benefit of the company.
There are diverse BSC types used in HR branches. The first of them is represented by the scorecard used for the whole personnel, irrespective of their division. Its mission is to evaluate the overall performance of the human resources sector and improve something if required.
The next type is the so-called “hire balanced scorecard”, which, according to its name, controls the employment of new people as well as the current staff ranking. The number of these types is not limited to those mentioned above, since there are also the following kinds of HR scorecard: the training, outsourcing, retirement, motivation and leadership BSC. All of them fulfill particular functions, which fall under the responsibility of any human resources department.
As mentioned above, the HR balanced scorecard involves several KPIs, which cannot exist without 4 basic perspectives, namely the financials, customer satisfaction, internal business processes and learning and growth. All of them are indispensably associated with the company’s strategy. Therefore, it is nearly impossible to implement the BSC in the HR department if you do not know how to apply those perspectives properly. Here, you should consider that there is a great difference between their usage in public and private sectors. For example, when it comes to the financial perspective in the public sector, all the attention is focused on the role of society in general and that of tax payers in particular, while the private sector primarily gives preference to stake holders only. If you understand this difference, it will help you modify the implementation of HR scorecard, which, in its turn, will affect the professionalism of your employees and improvement of their skills.