No matter what organization you work in, you definitely realize the importance of adequate personnel management. This task, however, is not easy to accomplish, taking into consideration the size of a company and the number of its employees. That is why it becomes clear why exactly the human resource department is known as the one that performs the most responsible duties when it comes to effective evaluation of workforce productivity. The larger the company is – the more elaborate and trustworthy system should be applied to measure these issues. In this case it seems impossible for any HR department to go without specific metrics that will help make use of the measurement process.
You have probably heard that the balanced scorecard system is widely applied by different sectors of one and the same organization. Each department, however, pursues different objectives when implementing this system. The human resource section, in its turn, works out and applies HR metrics to measure the efficacy of personnel performance. No wonder, it is considered one of the best methods for evaluating the effectiveness of the working process and the efforts of the company’s workforce. This system also helps define and organize the goals of the organization that are required to ensure stability and profitability of a company.
As a rule, working out and implementing HR metrics always takes time and efforts. The whole process generally starts with a detailed analysis of the company’s productivity and performance of its personnel. As soon as the major problems are identified, it becomes easier for the HR department to set up necessary metrics. In addition, human resource managers are recommended to check whether the available volume of the workforce is enough to ensure the growth and development of a company. In case the number of employees seems to be rather small and their knowledgeability and skills leave much to be desired, the HR department should organize additional training to promote their professional growth. Human resource metrics prove to be helpful in this process as well, because some of them may show whether the results come up to the primary expectations of managers.
As far as the overall number of the existing HR metrics is quite impressive, the HR department should define which of them may be used to the advantage of the company with regard to current problems and pre-set objectives identified by the management of the organization. The most crucial metrics that need implementation in most companies are the following: turnover rate and cost, time to fill, cost per hire etc. What you should remember is that your company will benefit from HR scorecard only in case there is a reasonable goal, relevance and sufficient research.