How to measure HRM in mining and oil/gas production?

In the post crisis economy it has become rather difficult to find competent and professional employees.  Headhunting turned out very popular in all business areas.  Both white and blue collars who can now choose what company to work for, of course if they are experienced and professional.  Recent economic recession let most businesses understand that the only people can overcome crisis.  No computer, no machine or many million investment can save the company, increase its customer base, introduced new products and services etc.  If the company personnel is not ready for changes, if there is an negative atmosphere inside the company, it wouldn’t be a reasonable to expect high performance from such personnel.  That’s why, the importance of human resource management keeps growing all the time.  As said above, adequate and competent employees are valued in various business areas, from production, mining and electronics to IT industry, financial services, investments etc.

Of course approaches to human resource management in industrial and intellectual spheres a fairly different.  At the same time, approaches to evaluation of HR performance in such business areas also differ.  Of it depends on specific nature of the work, company goals, requirements to personnel, demands and requests of employees etc.  However, use of balanced scorecard to evaluate HR performance can offer a unified solution to measurement of human resource management.  At the same time, it is important to remember that different key performance indicators are to be used in such evaluation, depending on business area being measured.

In mining and oil/gas production business approaches to human resource management evaluation are dictated by tough working conditions, high traumatism rate, frequent extra work, requirements as to physical conditions of employees etc.  When using balanced scorecard to measure HR performance in mining and gas production business it would be reasonable to use the following indicators:

  1. Percentage of employees who are willing to recommend company as employer.  Those who work in mining and gas production business know that this is a very hard work.  Moreover, often such employees endanger their lives.  That’s why, if a great number of employees can recommend a company as employer to their friends and relatives, it signals about their positive attitude two was the company and their satisfaction with working conditions, compensation system etc.  This is that secret way to measure employee satisfaction, to tell the truth.  As a rule, people would not recommend bad employers to friends and family members.  Of course, this indicator shouldn’t be measured too often.  Once a quarter or a half year will be enough.
  2. Average cost per medical claim. Mining and gas/oil production business is characterized by increased traumatism rate and dangerous to health and life.  Of as a rule companies cover medical claims in full, in case injury was not employee’s fault.  It is very important to keep track of medical expenses in order to save costs and control traumatism rate.  If this indicator keeps increasing, company personnel should reconsider working conditions and safety issues, otherwise lives of hundreds of people would be endangered, and the company will still have to cover their medical bills.
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