Evaluation of human resource management has become a priority task for most businesses. The recent economic crisis let everybody understand that only human resources, i.e. people who work for the company, can help it overcome crisis, off or innovative ideas, solution of strategic problems and creative offers for the markets. Investments by themselves and hi tech equipment can not solve problems and make decisions. That’s why human resources play the most important rule in any business.
At a first glance, it is not easy to measure something that cannot be represented with traditional financial figures. Indeed, how can one measure employee satisfaction or organization climate? And what is influence of these indicators on company financial results? Well, the answer is very simple. A satisfied employee is more likely to offer some new ideas that will help company gained competitive advantage in the market, especially if we’re talking about highly competitive markets. Employees are likely to work in a more productive way in a positive organization climate. The primary task of human resource department is to hire the best professionals, educate them, create a positive organization climate and suitable working conditions in order to retain such employees.
The investment business is characterized by importance of intellectual potential. Investment specialists give advice and recommendations to people who want their money make more money. There are many investment options nowadays. Some of them are safe while others are risky. It is imperative foreign investment company to have well educated and loyal personnel.
When measuring HR performance in investment business with balanced scorecard system the following key performance indicators are recommended:
- Talent retention percentage. They say that it is impossible to learn to become a genius investor. Of course you can doubt this statement, but it is partially true. There a born investors who have an inner sense telling them where to put money to earn more in future. Talented investors can greatly benefit the company they are working for. Of course, headhunting is very popular in this business field. A talented investor can earn millions of. That’s why, it is important to retain talented personnel by offering them competitive salary packages, working conditions, bonus systems etc. By keeping this indicator as high as possible, human resource department preserves intellectual potential of an investment company, which on the one hand creates a positive public image, and on the other hand guarantees high revenue for the company.
- Forecast average absolute error. The art of investment is the art of making predictions. Investment in stocks is about buying shares of the company that will make success or, to the contrary, fail during the next years. Making an investment mistake is losing money. Very often investment companies use their customers’ money. For this reason, it is imperative to keep this indicator under control, and keep it as low as possible. It is necessary to analyze mistakes in order to avoid them in future. Errors rate shows professionalism and competence of personnel in an investment company. That’s why this indicator is very important in HR balanced scorecard.