How to measure HR performance at chemical enterprise

In the post crisis economy it is imperative to understand that personnel is the supreme value for any company.  Of course, there are businesses were human factor plays an important role and businesses with the automated production process.  However, in both cases humans play the most important role.  With a rapid development of IT technologies production enterprises require less work force as compared to 20th century.  But all those machines and robots are created by people and manage by ordinary people like us.  To that’s why ignoring needs and requirements of the personnel means plunging a company into the crisis.  By the way, recent economic meltdown proved that only those companies can survive that possess the most valuable intellectual capital.  Machines and robots can not invent new products, services, strategists in the market.  They cannot adopt decisions and assume responsibility.  So, human resources matter much.

If we’re talking about production enterprises which should take into account the fact that sometimes employees are working in very tough conditions.  It especially concerns chemical industry as employees may contact hazardous chemicals that can cause illnesses, injuries or even death.  Chemical industry is characterized by increased risk factor, and those people who come to work to chemical enterprises are made familiar with this fact.  Human resource department at the chemical enterprise should understand the risk workers are facing, when managing personnel.  And of course it is imperative that performance of HR department is carefully evaluated.  The following key performance indicators will be quite helpful when measuring HR performance with balanced scorecard system which is known as one of the best tools to link operational and strategic management:

  1. New hire retention.  When a person comes to working to chemical enterprise he sometimes changes his mind as to desire to make career in chemical industry.  Employees evaluate dangers and analyze their working conditions.  So, a person leaves the company having worked there for to three months.  In such a way, chemical enterprise loses money for recruiting and education of such an employee.  For this reason the indicator new hire retention must be properly and timely measured, possibly once a month/quarter.  HR managers need to track newly hired employees and help them integrate into the company.
  2. Employees on long term sickness leave.  If this indicator is constantly increasing it signals about dangerous working conditions, especially if we’re talking about illnesses related to production activity (poisoning, accidents etc).  Besides the company have to pay such employees while their positions should be substituted which also requires time and money.  If this indicator exceeds allowed limits a thorough investigation needs to be carried out to find out reasons for frequent sicknesses.
  3. Incident rate.  Unfortunately, accidents happen at production enterprises including chemical plants.  High traumatism decreases employee loyalty and satisfaction and increases medical costs for the enterprise.  Sometimes high incident rate is explained by frequent rules violation of production personnel.

Sure thing, there are more indicators which should be created taking into account peculiarity is of production process, company goals, structure etc.

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