Evaluation of HR department performance is especially important in that area of finance, banking and accounting. The point is that in these types of businesses people play the most important role contrary to industrial enterprises when most of the work is performed by robots and machines. Of course, bankers and finance specialists have proper IT support, but still employees are those who perform actions, make decisions and assume responsibility for adopted decisions.
Even if bank has huge capital, attractive credit and deposit offers and many potential customers who might be interested in these offers, the bank may fail just because its personnel does a poor job. Management of personnel in financial institutions is an inseparable part of any business management system. Moreover, human resource absence must comply with the company strategic goals, its mission and core values. Only in such a case all human resource campaigns will turn out successful and help company reach strategic goals (in banks these are mostly financial objectives).
Balanced Scorecard is perhaps the most effective and simple tool to measure HR performance. The greatest advantage of this system is its ability to communicate operational in strategic management through evaluation of key performance indicators which must be carefully selected by those who implement BSC in the bank and assume responsibility for implementation results. It is very important to select the right indicators otherwise balanced scorecard may entirely fail.
- Task completion ratio. Bankers face multiple tasks during their working day. They have to deal with customers who have different requirements and demands, and thus the need different banking products and services. That’s why, if a banker undertakes to complete certain tasks he should do that within a certain period of time. It is imperative that a customer timely receives products or services he needs. That’s why task completion ratio is a very important indicator in evaluation of HR performance in banking. This indicator is calculated as ratio of total tasks and completed tasks. The higher the ratio, the better the performance and the greater revenue. It would be reasonable to measure such an indicator as often as possible. Bank employees may compile daily reports and submit it to chief manager.
- Time spent on priorities. Sure thing, every bank employee has primary and secondary tasks. And of course all tasks must be fulfilled. However, priority tasks should be given a special attention and a greater amount of time. For example, there may be very profitable customers asking for a business loan or wishing to deposit their money. Thus, a banker should spend more time to serve the customer belonging to primary target group.
- Employees who signed business conduct and ethics policy. Bankers have access to confidential information of the bank itself and customers. This is sensitive information that should not go to third parties. For this a reason it is important that bank employees are familiar with ethics policy of the bank otherwise offended customers may go to competitors which means loss of money.
To sum it up, it needs saying that effective HR policy in the bank results in revenue increase since satisfied employees directly contact with customers. It is well known that satisfied employees have the most satisfied customer. It is that simple.