HR assessment in logistics

Evaluation of human resource management is equally important in all business areas.  Sure, some businesses require greater participation of people in production process, while other businesses are fully automated.  In both cases human factor plays different roles, but still, the business is run by people.  Some business owners tend to forget that their business is not only capital, real estate, production facilities, but people who work for the company.  Recent financial meltdown turned out to be a good lesson for many companies that did not value intellectual potential they had.  Many companies turned bankrupts just because they had no idea what to do in the new business reality, of while other businesses manage to survive and even expand.

Human resource management is all about recruiting, employing educating and retaining of personnel.  These processes seem quite easy and a first glance.  But nowadays it is not so easy to find a professional employee and create suitable working conditions for him.  Headhunting is very popular in certain business areas.  That’s why due attention should be given to human resource management at any midsize and large company.

Human resource policy and methods should be clear and understood for employees.  Only in such a way the feedback system will work which is very important for any company.  At the same time, performance of HR department should be evaluated.  Ineffective human resource management will not only result in loss of money but it can also weaken company position in the market.  Lots of competitive advantage is the worst thing that can happen to any business.

When evaluating human resource management in logistics/transport business it is imperative to take into account peculiarity is of this kind of work.  Logistics services require thorough planning and a very serious approach.  When using balanced scorecard system for HR evaluation in logistics it is recommended to measure the following indicators:

  1. Average travel costs per employee.  Many logistics specialists have to accompany cargoes on the way to end customers.  The distance can be measured in thousands of miles.  A certain balance is to be kept here: logistics specialist should use convenient means of transportation but at the same time expenses should be reasonable.  By decreasing value of this indicator logistics department may save additional costs which can be used for special bonus and compensation programs.  Sometimes, there is no necessity or urgency for a logistics specialist to accompany cargoes.  In such cases the entire delivery process may be managed remotely.
  2. Employee lateness.  This indicator is applicable in any business.  Being late for work is not good.  But lately is in logistics business may lead to failure of the entire delivery chain.  For example, logistics specialist is 1 hour late for work.  The cargo came late to airport terminal and thus it will come late for seaport.  Of this is a breakdown of the entire delivery scheme.  That’s why employee lath should be strictly controlled by HR department.  Those employees who were regularly late for work should be punished, while punctuality must be encouraged.
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