Human Resources is one of the most crucial and integrated division for any business organization. It involves studying the different aspects of an organization in relation to its staff and also studies the employees on individual and collective basis. It usually involves metrics or indicators which are important to identify and analyze; employee attitudes, employee skill levels, employee turnover, staffing process, training programs, promotions etc. These indicators apply to almost seventy five percent of businesses. Although the option of building personalized indicators is also available in the Balanced Scorecards
Each of the metrics contains up to five performance indicators. Example, employee attitudes metric includes; Job Contentment, Manager Contentment etc.as for employee turnover in usually fashions cost per hire, advertising, relocations, turnover rate, length of employment etc. the key metrics for recruiting include; vacant period, performance appraisal of the new hires, financial impact of poor hires.
Under the retention metrics employee turnover, preventable turnover – the factor that studies reasons why the employee left and improvisation procedures, diversity turnover and financial impact of employee turnover are considered. Diversity turnover takes into account aspects as; professional, managerial and technical positions.
Being one of the most important metrics, training and development is given high importance to encompass indicators as; learning and growth opportunities, number of employees satisfied with the opportunities provided, on-job training satisfaction, new hires growth opportunities etc.
Despite the fact that although all organizations use these common set of HR metrics, the uniqueness that sets Balanced Scorecards apart is the components of these metrics. For example cost per hire is a detailed look into the various aspects of expenses from; advertising to online services, background checks to recruiter costs. In the same way recruitment and staffing are given specific components other than the common ones to understand the source of recruitment and the progress of the staff hired through it.
Not only the organizations, but the management on the whole can reap the benefits of Balanced Scorecards. It allows the senior management the facility of prompt assessment to identify areas of improvement in its human resource pool. It is a quick way to identify issues related to absenteeism and productivity and save a business entity from costly expenses. This HR related data is also useful in creating financial reports in order to link human resources measurements to investment return. This data allows the transformation of human resource capabilities to strategic values which due to its now quantified nature becomes easy for accessibility and readability. Balanced Scorecards is a program intended to aid organization and the management with the problems that may be disturbing their workforce and provides relief by getting to the root of human resource management issues with more than one perspective.